Beleaguered subscription video on demand streaming service Quickflix has today announced more information on its company restructure with moves that include shutting down its Sydney CBD and Auckland offices.
In a statement to the ASX today, it was announced that in addition to $4 million already being saved per year across operating and investment areas, Quickflix will focus on:
- Consolidating its Sydney operations at its distribution centre in Western Sydney.
- Reduction in the net cost of the Perth office.
- Bring in-house customer care and support.
- Reduce delivery network charges.
- Reduce its headcount, losing 15% of its existing staff.
These savings will save Quickflix $1 million each year, with Quickflix reporting that it will not impact on core day-to-day service levels.
The directors of the company have agreed to a restructure of their renumeration, including a reduction in salary. CEO and chairman of the company Stephen Langsford’s salary will reduce to $200,000 per annum from $280,000. CFO Simon Hodge will see his annual sarary of $250,000 reduced to $170,000 per annum. These reductions are in effect from 1 April 2016.
The company has reported that it recorded a “substantial” profit for the half year to 31 December 2015.
A Canstar Blue survey in late March reported that Quickflix customer satisfaction was on par with Presto and Foxtel.