The Channel logo

News

By | Kelly Fiveash 15th April 2009 10:35

Sage waves voluntary redundo plan at staff

Software co won't say how many it wants to lose

Software maker Sage is asking its UK staff to consider taking voluntary redundancy in a move to cut costs at the company.

“The changing market we're in means that it is more important than ever to look at the costs we incur as a business and how we can become even more effective in the way we work,” said Sage UK and Ireland managing director Paul Stobart.

“As all businesses are at the moment, we're doing everything that we can to keep costs to a minimum and in addition we've let our people know today that we are offering our UK staff the chance to take voluntary redundancy.”

Stobart added that Sage was offering staff the opportunity to take a pay-off in a move to reduce headcount and slash costs. However, he didn’t reveal what reductions it’s hoping to achieve from the strategy.

The biz software firm, which employs more than 14,000 people globally, has 2,200 staff in Blighty and claims over five million customers worldwide.

The majority of its UK workers are based at the company’s Newcastle Great Park, Gosforth site.

Staff have expressed concern about the swift action Sage has taken to cut costs. One employee told El Reg that the software maker wasn't providing very much detail about the strategy.

"There hasn't been anything concrete confirmed so everyone is unsure," said the source. "It's pretty much a feeling of uncertainty as we haven't had much information."

We asked Sage if it could comment on how many voluntary redundancies it was hoping to achieve, and whether it could be forced to move to compulsory redundancies or some other more severe measure if the vendor failed to hit its target.

However, a spokeswoman declined to respond to our questions. She was able to confirm that the cost-cutting strategy would only be applied to staff based in the UK.

It’s understood the redundancies will take place next month. ®

comment icon Read 5 comments on this article alert Send corrections

Opinion

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Features

money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals
Angus Highland cow
Pet carriers not wanted for whitebox stampede
FBcoldstoragearray
Sorry OpenStack and Open Compute, we're not all Facebook
Gary Kovacs, CEO of AVG. Pic: World Economic Forum
Scammy download sites? Government snooping? Run of the mill for Gary Kovacs