Restructuring consultation for iSoft staff

Healthcare software provider, iSoft, has confirmed that it is consulting its UK staff about restructuring the company and offering options including voluntary redundancy. Letters to staff were sent out this week.

A spokesman for the firm said: “We have entered into a consultation process with UK staff. It’s a 90 day consultation looking to restructure and save money.”

He confirmed that voluntary redundancy was among the options in the consultation which affects around 850 staff, but was not able to say what other measures were being considered.

The news comes in another difficult week for iSoft whose shares on the London Stock Exchange closed at 95.5p on Wednesday evening (10 May), compared to a 12 month high of 461p.

The company has issued two trading statements since the beginning of 2006 warning investors of lowered revenue and profits. The first was triggered by delays in and rescheduling of its work in three regions covered by the National Programme for IT.

The second said that iSoft had been unable to complete an anticipated update and extension to an existing UK contractual arrangement, outside the national programme. It attributed the problems to “significant recent negative public comment surrounding the company” following its earlier statement. It also signalled efforts were underway to restructure and cut costs.

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