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Kavanagh restructure results in redundancies

Microscope contributor

Kavanagh has made a little more than 10% of its workforce redundant with the cuts coming from its strategic consulting business.

Along with the majority of businesses that operate in the enterprise market, Kavanagh had a tough 2009 and split its efforts into three key units: support and managed services, systems integration and strategic business consulting.

Rob Campbell, managing director at the Berkshire-based Kavanagh said its key customer base grew 12% last year, services revenues was up 15% and new business represented 20% of turnover and 25% of gross profit.

"Unfortunately, our strategic consulting division failed to have any significant traction with the marketplace and only accounted for 2% of revenues," he told MicroScope.

"Accordingly we have restructured the business and will now outsource these contracts to third parties rather than retaining staff to do this," said Campbell.

This has resulted in the loss of around 11 jobs but some of those individuals will be called on to provide services including workshop training for customers.

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