CenITex to slash staff numbers

Victoria's IT agency, CenITex, is set to slash 200 jobs and cancel 80 vacancy advertisements, in a bid to balance the budget of the troubled and costly IT shop.

The reductions will see the company let go 150 contractors,, and the retrenchment or redeployment of 50 public servants.

CenITex told ZDNet Australia today that staff reductions at this point would total 280, but the number could change by the end of a consultation period with staff.

Staff were made aware of the cuts in a memo sent yesterday afternoon. CenITex CEO Michael Vanderheide said in a statement that the decision to conduct cost-reduction measures was difficult, but necessary, over the next 12 months.

"The coming year for CenITex will be one of consolidation, with the focus on delivering customer-funded projects and the provision of core services," Vanderheide said. "I know this is not easy news for our staff and we face some very significant challenges, particularly for an organisation as young as ours. However, based on what I've seen in my time with CenITex, I'm confident our people are up to the task.".

CenITex employees have been previously outed for having exorbitant salaries and contract fees, for services rendered, with some reaching heights of $500,000 per year.