Employees Suffer As A Result Of United States Legislative Moves

Ivy Comptech, the India based subsidiary of Party Gaming is looking at a downsizing of in access of 800 employees resulting from the effect of the new Unlawful Internet Gambling Enforcement Act which was recently passed by the United States Congress.  Asian Age reports that these employees are losing their jobs as the company embarks of what it terms its initiative to create the right size for dealing with the new realities of online Internet gaming.

Random-Logic, which is an Israeli company, carried out a similar downsizing recently. The subsidiary of 888 Holdings.com fired 100 of its employees.   
An Ivy Comptech spokesperson said that her company was letting people go in order to allow the company to advance and to operate within the best possible parameters in light of the current business situation. With this in mind the company let go in access of fifty percent of its employees, over 800 personnel, giving them severance packages.

The employees being let go are mostly those at entry level positions or mid-level.

To whatever extent that it can, Ivy Comptech is aiding those employees that are being let go to find other positions. They have set up a widescale process for out-placement with the hope of placing around 80 percent of those employees that have been affected, by getting them positions in other IT companies located in the same geographic area of Hyderabad.

An is reported as saying that their out-placement service process began last Thursday afternoon at 3 p.m. when the company met with Nipuna Services Ltd. Another eight companies are expected to arrive on Friday to choose qualified prospective employees. The Ivy Comptech spokesperson also explained that those who cannot be placed in new positions in this fashion would be referred to job consultants to be hired. The spokesperson also said that the job placement process is totally voluntary and that employees are not required to participate.

After announcing that it would no longer receive bets from United States residents, PartyGaming wrote off costs of about $250 million. Nearly 75% of the company’s sales were derived from the United States.

 Ivy Comptech being a subsidiary of PartyGaming, means that the effect on its Indian operations is more clearly pronounced. Now that the company is barred from doing business within the important US market, PartyGaming is now seeking to expand its operations in Asia and has ambitions to develop the online gambling market in the Philippines, China and Singapore.

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