Redstone to cut jobs as business units merge

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Redstone to cut jobs as business units merge

Microscope contributor

Redstone is set to consolidate its three operating divisions into one trading entity with the loss of around 50 jobs.

The networking integrator concluded its operational review on Friday by selling the security reselling and services business of Redstone Managed Solutions (RMS) to the management team for £1m in cash.

Under the terms of the deal, 58 employees based at the Stoke office will transfer to RMS Managed ICT Security Ltd, set up by RMS managing director Robert Cavan. The cash payments will be made in installments by 31 March.

Sources close to Redstone, said chief executive Tony Weaver - who joined the firm in August along with Chairman Ian Smith - sent a memo to staff stating that management had also considered other divestment opportunities including an MBO of Redstone Converged Solutions (RCS).

However, the board decided to use the remaining businesses in the group - RCS, the connectivity and managed services operation of RMS and the recently acquired Fujin Systems - as the foundations for future expansion.

The businesses will be merged and around 50 staff made redundant, insiders have claimed, as Redstone cuts its cost base to reflect the market conditions and the new group structure.

As a result of the operational review, RCS managing director Rick Marshall and sales director Richard Bell have tendered their resignations. The remaining senior management team will now report to Weaver.

Weaver told MicroScope: "The disposal of our security business has concluded our corporate [restructuring] activity and we've now turned more attention to operational matters."


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