WAM!NET is laying off half its European staff as part of a restructuring plan that it hopes will see it become profitable by the end of the year.


The 50 losses are part of a larger worldwide lay-off of 130, reducing the overall headcount to 375 and the European total to 52.


"Our aim is to put to-gether a business model that becomes cashflow positive by the end of the year," said European managing director Chris Friend.


"We want to be here in the long term to serve our customers. I think that is a responsible attitude."


WAM!NET is in the process of securing further funding that it expects will keep it running until the end of the year. "Were well on track to announce successful funding at some point in July," said Friend.


He declined to comment on reports in the US that the finance will be "a loan with a very unattractive interest rate" and that WAM!NET would lose more money this year than last.


Of the 50 job losses in Europe, 16 are in the UK. The rest come from the closure of the firms regional sales offices in France, Ger-many, Holland and Scandinavia.


The firm is also cutting back its activities in film and video work to concentrate on the graphic arts, which excluding its deal with the US Navy makes up 90% of its business.


The UK is its largest market in Europe, with 190 of its 250 Direct! customers based here.


"Ninety per cent of European traffic is in the UK," said Friend.


By encouraging Direct! customers to use their systems more through schemes such as the recently announced "eat as much as you like" pricing, WAM!NET hopes to increase the overall volume of work sent via the network.


Story by Barney Cox