Software firm sheds staff

TelesensKSCL employed about 350 people in Edinburgh

More than 200 staff are being made redundant at an Edinburgh software company, BBC Scotland has learned.

The staff are being axed from TelesensKSCL, which makes the software used by mobile phone companies to prepare bills.

Earlier this week receivers were called into KSCL, a subsidiary of the German Telesens group which is itself facing liquidation.

It is believed 140 staff will be kept on while efforts continue to find a buyer for the Scottish operation.

The firm makes phone billing software

TelesensKSCL refused to comment on the job cuts, but earlier this month it said it was confident that they could be avoided despite the limited time available to find a buyer.

Edinburgh-based KSCL was taken over by Telesens in Cologne 18 months ago.

The financial troubles facing the parent company emerged in early June when the German stock exchange was told the Bank of Scotland and the Royal Bank of Scotland had blocked the transfer of funds from Edinburgh to Cologne.

Under German securities laws the firm was given three weeks to find ways to avoid the launch of formal insolvency proceedings.

Global slowdown

More than 19 million people in 30 countries receive their phone bills from the TelesensKSCL's billing administration and customer care system.

Just three-years ago KSCL was one of Scotland's largest software firms and it was planning to take on more staff as part of a global expansion.

However, like many high-technology firms it has been hit by the global economic slowdown.