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Business
Jun 18, 2026
Analyzed by GPT OSS 120B

City & Guilds Halts Mass Redundancies and Greece Offshoring After Union Negotiations

AI Summary
City & Guilds announced that plans to cut around 400 UK jobs and shift roles to Greece have been abandoned after Unite secured a settlement for the limited redundancies already announced. The reversal follows a £22 m cost‑cutting drive, a £166 m sale windfall, and investigations into undisclosed £3 m bonuses to senior executives.

City & Guilds confirmed that the proposed mass compulsory redundancies and offshoring of hundreds of UK roles to Greece will not proceed, after union negotiations delivered a financial settlement for the small number of workers already affected.

Negotiated Settlement Stops Planned 400‑Job Cut

The original proposal, first reported in December, aimed to remove about 400 UK positions as part of a £22 m cost‑cutting programme following the October acquisition of the charity’s training and awards business by the Greek‑owned PeopleCert. After the sale, 75 compulsory redundancies were announced, prompting widespread industry dismay and the threat of legal and industrial action.

  • Union Unite negotiated a settlement that largely avoided the large‑scale job losses.
  • City & Guilds pledged redeployment, voluntary redundancy options, and enhanced financial support for any remaining redundancies.

Financial Stakes: £22 m Cost‑Cut, £166 m Sale Proceeds, and £3 m Executive Bonuses

Key monetary figures underpinning the controversy include:

  • £22 m earmarked for cost reductions after the PeopleCert acquisition.
  • The charity’s sale generated a £166 m windfall intended for continued charitable work in vocational training.
  • Internal investigations revealed that former chief executive Kirstie Donnelly and finance chief Abid Ismail awarded themselves nearly £3 m in bonuses without senior approval.

Industry and Regulatory Fallout

The strategy sparked intense backlash across the training sector and triggered multiple inquiries:

  • The Charity Commission opened a statutory inquiry into the sale of the charity’s awarding, assessment and training businesses.
  • PeopleCert launched its own internal investigation, concluding the undisclosed bonuses.
  • Legal threats loom as unions consider further action if future offshoring plans emerge.

What’s Next for City & Guilds and PeopleCert?

Looking ahead, the organisations face several challenges:

  • Continued monitoring by the Charity Commission and potential court proceedings over the bonus payments.
  • Unite’s statement that it will remain vigilant suggests future negotiations may focus on safeguarding remaining UK roles.
  • PeopleCert will need to rebuild its public image while integrating the acquired business without further workforce disruption.