Plexure lays off 55 staff to reduce costs by $8m

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Mobile marketing software company Plexure has confirmed that 55 people will be made redundant in a cost-cutting exercise to save $8 million.

The company reported a first half loss of $8.5m for the six months ended September.

The dual Australian and New Zealand listed company merged with transaction platform provider Task for $A120m ($127m) in September, with Task chief executive Daniel Houden taking up the chief executive role of Plexure Group.

Following the merger, Plexure reviewed its operations, finding its previous strategy did not generate material sales, and began a consultation process.

The company told the share market this morning the process had finished and that it would cut 55 staff in non-engineering roles.

Houden said the restructure would enable Plexure to take advantage of the combined benefits of the merger.

"The consultation process has been essential in making Plexure a stronger business for the benefit of customers, shareholders and, most importantly, current and future employees of the business.

"We look forward to now taking advantage of the joint businesses' capabilities".

Plexure said mature Task capabilities had replaced the need for Plexure's ongoing investment in similar areas, and customer growth could be driven through Task's existing base and pipeline.

It said the reshaping of the business would allow it to focus on improving its engagement platform, with increases in the joint Plexure and Task software development staff base in Poland.

Plexure's share price increased 7.5 percent to 50 cents a share during early trading this morning.