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Some of the employees of the Party Gaming subsidiary Ivy Comptech in India are feeling the backlash of the Unlawful Internet Gambling Enforcement Act – UIGEA, recently passed by the United States Congress. More than 800 employees are the victims of a retrenchment exercise that the company has embarked upon as a “right sizing” initiative, reports The Asian Age.
This move follows the similar exercise carried out by the Israeli company Random-Logic, where the 888 Holdings.com subsidiary laid off over a 100 employees.
“We have to rightsize the company operations in order to advance in the best possible shape in the current business scenario. More than 855 employees, representing over 50 percent of the current staff have been asked to leave with a financial package,” an Ivy Comptech spokesman explained to the newspaper. “Employees who have been affected are primarily in the entry and mid-level positions.”
As much as it can, Ivy Comptech is helping the departing employees to find other jobs and has prepared a comprehensive out-placement process that hopes to place about 80 percent of the affected employees in other IT companies that operate in or around Hyderabad, its hometown. “As part of the out-placement process that began at 3 p.m. last Thursday afternoon, Ivy Comptech held talks with Nipuna Services Ltd. and about eight companies are expected to come on Friday to select prospective employees,” the sources informed.
For those who cannot be covered by the nine companies, the services of job consultants would be required, sources said, adding that it is not binding on any employee to participate in the process.
As Ivy Comptech is a captive unit of PartyGaming, the effect on its Indian operations is more pronounced. With the key US market out of range, PartyGaming is now looking at expanding into Asia and has online gambling ambitions in Philippines, Singapore and China.
Partygaming said that the US accounted for nearly 75 per cent of its sales. The company has booked costs of about $250 million after exiting the lucrative US market after the company said it would no longer take bets from gamblers there.
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