Solution 6 staff laid off

By ADAM GIFFORD

Australian software company Solution 6 has laid off its Auckland development team, transferring responsibility for the projects they were working on back to Sydney.

New Zealand general manager Greg Bateman said most of the 20-strong team finish work tomorrow.

Communications manager Mark Elliot said the move was part of the restructuring by new chief executive Neil Gamble. He is trying to stabilise Solution 6 after an aggressive acquisition strategy left it trying to absorb 15 companies bought in the past two years and an expected loss of $A16 million for the current year.

Solution 6 specialises in practice management software for accountants and lawyers. The company's troubles have hurt its share price. Last week Telstra decided not to exercise its options over unissued shares, which would have increased its holding from 19.76 to 25 per cent of the fully diluted capital. Solution 6 shares are trading at less than Telstra's exercise price.