Quickflix has cut the pay of its senior executives, closed its Sydney CBD office and planned another 15% cut in the number of staff as it fights to revive its business.
The moves are all part of an attempt to improve the balance sheet as the local streaming media group comes under pressure from new market entrants, including US giant Netflix.
The salary of founder Stephen Langsford will be cut to $200,000 a year from $280,000.
He has also agreed that payment of his salary above $150,000 a year will be deferred until such time that the company has completed a capital raising of a minimum of $2 million.
The base salary of CFO Simon Hodge will be cut to $170,000 from $250,000 a year.
Quickflix is in a trading halt. Its shares last traded at $0.001.
Further to already announced costs savings of $4 million, the company has consolidated Sydney operations at its distribution centre in Western Sydney and closed its Sydney CBD and Auckland offices.
The streaming media and DVD group has been trying to find a way to revive its business.
It’s looking for new funding, more revenue generating opportunities and a way out of its heavy minimum guarantee payment obligations from content licensing deals it did several years ago.
The company is in talks with the content owners to try to restructure those minimum payments so that it can continue to distribute TV shows and movies.
Quickflix was losing 5000 subscribers a month when Netflix launched in March last year.
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