Vodafone Platinum partner PMGC Technology Group has cut 20 jobs and in a separate move is closing three of its offices.
The office closures are part of a major restructuring which will see half its staff working remotely.
PMGC closed its Manchester headquarters in December and plans to shut its Sunderland office next month, as well as its Bristol premises in May when the leases expire.
PMGC CEO Jason Yeomans estimates PMGC’s remote working strategy will save the company £200,000 a year, which it plans to invest in growing the company. He insisted there are no plans to close PMGC’s Edinburgh, Birmingham and London offices.
Yeomans added that the redundancies, which have seen staff numbers cut to 60 over the past six months, are not linked to the office closures at Manchester, Sunderland and Bristol. He also denied they are due to the cost of the company’s acquisition drive, which saw the company buy six companies in the 15 months to August 2013 when it bought Bristol-based AMC.
He said: ‘As with any acquisition, there are economies of scale. The redundancies were across all offices as we centralised all our support and back office services into our Birmingham office, although we did offer our staff the opportunity to work in different divisions.’
He said the office closures are a cost cutting measure which PMGC is rolling out after a successful trial of its own remote working solution – the Weightless Office – by its Manchester-based team late last year.
‘We sell The Weightless Office solution to our customers and we decided to walk the walk as well as talk the talk. As the lease was expiring on our Manchester office we decided to run a trial. It worked so well we are extending it to our Sunderland and Bristol offices. The staff are very happy with the system which allows them to work more flexibly. It has also saved us a fortune which will allow us to recruit ten more staff before May.’
Four of ten new staff start this week with another six joining by May, with most in consultative sales roles.
Yeomans said PMGC’s evolution from a largely mobile business to a managed services company also influenced some staff’s decisions to leave. ‘They were not prepared to come on that journey,’ he said.
Yeomans said the transition to managed services had boosted sales, with revenues up from £12m to £13m in 2013 and underlying profit in the 12 months to May this year predicted to almost double to £2m.
PMGC connections are also on the up, rising from 55,000 to 60,000 in the last six months, whilst customer numbers have risen from around 3,000 to 3,500 in the same period.