Hostworks management gutted

Broadcast Australia has removed at least 11 management positions from its web hosting subsidiary, Hostworks.

Seven staff were made redundant and four resigned after meetings in Hostwork's Sydney office yesterday and Adelaide office today - the majority of which were senior managers, team leaders or employees in sales and marketing positions.

Very few of the management staff that have been with the company since its inception remain employed with the company.

Of the 18 management staff that reported directly to either chief operating officer Peter Wildy or former national sales director Klaus Bartosch at the start of June 2009, only three remain on the payroll.

COO Peter Wildy and CFO Kylie Turner announced their resignations on June 12, but both are expected to remain with the company until August.

One retrenched employee, who spoke to iTnews on the condition of anonymity, claims to have been called into a room for a meeting, handed redundancy papers and escorted from the premises.

Another former employee told iTnews that "all corporate knowledge" stored at Hostworks has been shown the door.

"Macquarie is drawing cash out of the Hostworks business," he said. "Almost the entire senior management team is gone."

Hostworks managing director Paul Mullen has since been interviewed by iTnews.

TIMELINE

OCTOBER 1999:       Young Australian of the Year Marty Gauvin forms Hostworks in Adelaide

AUGUST 2000:          Peter Wildy joins Hostworks, at that stage with 20 staff

JULY 2003:                Former DMR/Aspect staffer Klaus Bartosch joins Hostworks

MARCH 12, 2008:     Broadcast Australia announces purchase of Hostworks for $68.9 million

APRIL 2, 2009:          Hostworks founder Marty Gauvin quits

APRIL 9, 2009:          Former Sun Microsystems MD Jim Hassell appointed as interim MD

JUNE 2, 2009:           SBS TV switches its web hosting business to Macquarie Telecom

JUNE 4, 2009:            Hostworks appoints Paul Mullen as managing director

JUNE 7, 2009:            Hostworks national sales manager Klaus Bartosch quits

JUNE 12, 2009:          Hostworks COO Peter Wildy and CFO Kylie Turner resign

JUNE 22, 2009:          Broadcast Australia begins culling staff in Sydney

JUNE 23, 2009:          Broadcast Australia Paul Mullen travels to Adelaide to meet affected staff