MCI Australia had six redundancies in early September, which according to MD Ray Shaw was the result of rapid expansion in 2011 and slower business in the last quarter of 2012.
Mr Shaw said MCI Australia had doubled staff numbers in the past 12 months. Business in 2012 was looking good but the latest round of conferences and events in Q3 had seen reduced delegate numbers and budgets.
“Forward sales of sponsorship for events next year is tough going and we see 2013 potentially as tough, if not tougher than this year,” Mr Shaw said.
“MCI has some of the world’s best accounting and management control systems and we can guarantee great job security. Our small readjustment put us back on track to meet budget this year and next and our 2014 business is already well over budget.
“We remain one of the largest meeting and events employers (well on track to reach our 100 employee target) and certainly the global employer of choice.
“MCI Global is experiencing lower growth than budgeted but it’s still achieving positive organic growth (the best type) and there are some amazing acquisitions in the pipeline for announcement later this year. We are a well run staff shareholder owned company and being fiscally responsible.”
Mr Shaw said the Sydney market is tighter than most markets with the imminent closure of the Sydney Convention & Exhibition Centre.
“We are seeing conferences go to other states (and we have offices in most so we are not as impacted), or internationals simply not coming to Australia until a new one is built (and that is bad for Australia). I don’t think any Sydney based PCO would be drinking champagne at present.”
Of the redundancies, Mr Shaw said four staff had been with MCI for less than six month.
“We are very sorry for those affected and will assist them with industry placement where we can.”