ouch - at 10% of revenue base lost that's a big adjustment. It will re-balance over time, but given the major costs of servicing this are not sunk costs (i.e this ins't bonus incremental revenue) (staffing mostly) they'll need to downsize which is expensive, but also look at load management. Some of these big contracts can be the bread and butter in terms of volume/keeping staff busy and booked - with the cream coming from other referrals etc.
Big task ahead to re-balance supply of services with demand. one thing for sure, staff morale will be plummeting with the knowledge that some (~20% of people at the front line of the Konekt Workcare business) will be on the chopping block come next July.
