250 NETeller employees get pink slips

Payment processor NETeller is laying off 250 employees - the latest victims of the fallout from the U.S. Unlawful Internet Gambling Enforcement Act.

The majority of the jobs being cut are in Calgary, Canada, but the company will also let go 30 staff members in Britain following its withdrawal from the American market.

Reductions are taking place at NETeller's contact center as well as within its marketing, processing and IT departments, a company spokesperson told news service Reuters Friday.

The layoffs come after NETeller stopped processing financial transactions from U.S. residents when its founders were arrested for alleged money laundering and promotion of online gambling last month.

"The events of the past months have led to challenging times for the group, and the board has taken these measures to ensure the group has a sustainable business going forward," company CEO Ron Martin told Reuters.

In addition to the staff reductions, NETeller is also considering unloading or leasing some of its properties in Calgary, which is located in the province of Alberta. Total cash costs associated with restructuring are expected to be $1.1 million for 2006 and $3.7 million for 2007, the company said.

NETeller's shares continue to be suspended from public trading.

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