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Neteller blames job cuts on U.S. gambling crackdown
Neteller, the online payment processing group, will trim about 250 jobs at sites in Canada and the U.K. Around 220 jobs will be cut at the group's contact center and security operations in Calgary, Alberta. Another 30 jobs will be lost in Britain when Neteller operations move from Gatwick to Cambridge in March.
Neteller said in a statement the job losses were the result of a "reorganization and restructuring of its operations."
The company's services were used extensively for payments made to online gambling sites before a change in U.S. law last year made that type of transaction illegal.
Since then there has been a mass withdrawal of online gambling companies from the U.S., prompting Neteller to follow suit.
A Neteller spokesman said the job losses are a direct result of the recent changes in U.S. online gambling laws.
Since Neteller stopped processing payments for U.S. residents, transfer volume and customer enquiries have "decreased substantially."
"The company is looking to expand in Europe and in Asia in particular," a Neteller said of plans to grow the business following the withdrawal from the U.S.
The group will continue with its current business and has "plenty of product areas (it) can expand into," he added.
Tim Ferguson of Silicon.com reported from London
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