Praemium Reshapes Tech Division, Cutting 28% of Staff Post-Technotia Deal
Praemium Limited is undertaking a major restructure of its technology division following its acquisition of Technotia Laboratories, aiming to streamline operations and reduce costs while enhancing technological capabilities.
- Restructure targets 15% headcount reduction in Australia
- Closure of Armenian software development operations by FY2026 end
- Annual technology salary costs expected to fall by around $9 million
- Redundancy costs estimated at $3.3 million in FY2026
- Integration to enhance automation and fintech capabilities
Strategic Restructure Following Acquisition
Praemium Limited (ASX – PPS) has announced a significant organisational restructure within its technology division, following its recent acquisition of Technotia Group Pty Ltd, known as Technotia Laboratories. The move aims to streamline Praemium’s technology operations by eliminating overlapping roles and improving overall performance and automation capabilities.
The restructure will see a reduction of approximately 15% in full-time equivalent (FTE) staff based in Australia. Additionally, Praemium will close its longstanding software development operations in Armenia by the end of the 2026 financial year, which will further reduce headcount by around 13% in that region.
Cost Savings and Integration Benefits
Despite the headcount reductions, Praemium is confident that the integration of Technotia Laboratories’ advanced scientific and technology expertise will enhance its technology functionality and automation. The company expects to reduce its annual technology salary budget by approximately $9 million on a run-rate basis after accounting for the new Technotia team.
However, these savings will be partially offset by redundancy costs estimated at $3.3 million during the 2026 financial year. Further financial details related to operating costs and capital expenditure impacts will be disclosed in Praemium’s upcoming half-year results announcement scheduled for 23 February 2026.
Leadership Perspective and Future Outlook
CEO Anthony Wamsteker emphasised the strategic value of the acquisition and restructure, highlighting the enhanced capabilities in automation, artificial intelligence, and user experience design that Technotia Laboratories brings. He acknowledged the difficult impact on employees, many of whom have been with Praemium through its growth phases, but framed the changes as necessary to position the company as a fintech hub with cutting-edge technology.
The closure of the Armenian operations, while significant, is part of a broader plan to consolidate technology development closer to Praemium’s core markets and newly acquired talent pool. The company is currently consulting with affected Australian employees and has communicated the changes to its Armenian team, with the restructure expected to be fully implemented by the fourth quarter of FY2026.
Market and Operational Implications
This restructure signals Praemium’s commitment to evolving its technology platform efficiently while managing costs in a competitive fintech environment. Investors will be watching closely for how these changes translate into improved product offerings and operational agility, especially as the company integrates new AI and automation capabilities.
Bottom Line?
Praemium’s bold restructure sets the stage for a leaner, more technologically advanced future, but the real test lies in seamless integration and market response.
Questions in the middle?
- How will the integration of Technotia Laboratories’ technology translate into new product innovations?
- What impact will the Armenian operations closure have on Praemium’s global development capacity?
- Can Praemium maintain employee morale and retain key talent amid significant headcount reductions?
