"PeopleCert informed investors this month that the deal offered a compelling opportunity to make [C&G] a leaner organisation. In a presentation aimed at its financial backers and published via its website, it said it had identified 22m of savings at C&G, of which 13m were personnel cost synergies that would largely be achieved by failing to replace staff leaving the institute with hires from the UK."
"It outlines how PeopleCert plans to relocate a third of those jobs to Greece at a cost [of] up to 50% lower. The same quantity of roles are due to not be replaced due to overlapping functions, the presentation sets out, while the remainder will be rehired in the UK. The result will slash personnel costs as a proportion of revenue by 15 percentage points from 69% to 54% within two years, with a target of eventually matching the Greek group's ratio of 26%."
City & Guilds is reducing its UK workforce as part of a £22m cost-cutting plan after acquisition by PeopleCert. The institute was founded in 1878 and provides national technical qualifications and apprenticeships across many trades. PeopleCert identified £22m in savings at C&G, including £13m from personnel synergies mainly achieved by not replacing departing UK staff. C&G employs about 1,800 people and has an annual churn of roughly 340 employees. Plans include relocating a third of departing roles to Greece at up to 50% lower cost, not replacing a similar number due to overlap, and rehiring the remainder in the UK. Personnel costs are forecast to fall from 69% to 54% of revenue within two years, with a longer-term target of 26%.
Read at www.theguardian.com
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