The training and qualifications body City & Guilds is shrinking its UK workforce as part of a \u00a322m cost-cutting drive after it was acquired by a private Greek business in October.<\/p>\n
Founded in 1878 by the City of London and a group of 16 livery companies, the original institute developed a national system of technical education, offering qualifications and apprenticeships<\/a> in fields ranging from manufacturing and mechanical engineering to hairdressing and horticulture.<\/p>\n In the autumn it was announced that the charity was selling its training and awards business, City & Guilds (C&G), for an undisclosed sum to PeopleCert<\/a>, an international certification company.<\/p>\n PeopleCert informed investors this month that the deal offered a \u201ccompelling opportunity to make [C&G] a leaner organisation\u201d.<\/p>\n In a presentation aimed at its financial backers and published via its website<\/a>, it said it had identified \u00a322m of savings at C&G, of which \u00a313m were \u201cpersonnel cost synergies\u201d that would largely be achieved by failing to replace staff leaving the institute with hires from the UK.<\/p>\n The document implies that C&G, which has 1,800 staff, has a churn rate equivalent to about 340 people leaving a year. It outlines how PeopleCert plans to relocate a third of those jobs to Greece<\/a> \u201cat a cost [of] up to 50% lower\u201d. The same quantity of roles \u201care due to not be replaced due to overlapping functions\u201d, the presentation sets out, while the remainder will be rehired in the UK.<\/p>\n 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\u2019s ratio of 26%.<\/p>\n There is a \u201cclear opportunity to transition C&G operations from a non-profit business model to a best-in-class, lean corporate structure, unlocking further profitability\u201d, the presentation adds.<\/p>\n The plan to replace skilled UK staff with lower-cost alternatives and cut the workforce by attrition might appear out of place with the image of the City & Guilds of London<\/a> Institute (CGLI), which has made its reputation by helping people become more employable and increasing their skills since Victorian times.<\/p>\n