Telecom announced today that they will be shutting down their online shopping website Ferrit.Ferrit was started up in 2005 and has played a huge role in helping New Zealanders feel comfortable doing retail shopping online.
Telecom says that the decision to close down Ferrit "reflects that there has been a range of changes in both the telecommunications landscape and the company's strategic priorities since Ferrit first launched in 2005."
Ferrit has been a big loss-maker for Telecom and it would have taken them years to make a profit. While Telecom will not release any figures, industry insiders estimate Ferrit to be a $30 million investment project.
Ferrit was seen to be the "pet project" of former Telecom CEO Theresa Gattung, however under the new leader ship of Paul Reynolds the telecommunications giant is directing the focus back to core business such as mobile communication and broadband.
Ferrit has 24 full-time staff and Telecom say they will do their best to place these people elsewhere within the company.
The Ferrit website will continue to take orders until 5pm on Wednesday, 14th January.
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