City & Guilds scraps mass redundancies and offshoring UK jobs to Greece

City & Guilds Halts Mass Job Cuts and Shifts Focus Away from Greece

City Guilds scraps mass redundancies and offshoring - City & Guilds, the prominent vocational training organization, has announced that it will no longer proceed with plans to implement widespread mandatory redundancies and transfer hundreds of UK-based roles to Greece. The decision comes after months of speculation and criticism surrounding the potential job losses, which were initially outlined as part of a £22 million cost-saving initiative following the acquisition of the charity’s training and awards business by the Greek-owned PeopleCert in October 2025.

The move to offshore jobs to Greece had been a key element of the strategy to streamline operations and reduce expenses. A presentation prepared for PeopleCert investors in late 2025 had outlined the intention to replace UK staff with international employees, raising concerns about the long-term stability of local employment. However, after the sale was finalized, only around 75 compulsory redundancies were initially announced, setting the stage for further discussions within the organization.

Despite the initial reduction in job cuts, the plan had already sparked significant unease among industry professionals and employees. The training sector, which relies heavily on City & Guilds as a cornerstone for skills development, expressed alarm over the prospect of losing hundreds of positions. The potential legal and industrial challenges loomed large, with fears that the offshoring could lead to disputes over fair treatment of workers and the organization’s commitment to its workforce.

On Thursday, the union Unite confirmed that negotiations with PeopleCert had resulted in a “financial settlement for the limited number of workers currently being made redundant,” effectively shielding most employees from further job losses. According to Peter Storey, a regional officer at the union, the agreement “secures a financial package that allows affected workers to retain their employment while ensuring the organization can meet its operational goals.” Nevertheless, Storey emphasized that the union would continue monitoring the company’s future decisions under PeopleCert’s leadership.

“Unite will remain vigilant of the future direction of travel at City & Guilds under PeopleCert,” said Storey. “While the immediate threat of mass redundancies has been averted, we are concerned about the long-term implications of this strategy.”

In response to the developments, a City & Guilds spokesperson stated that the new measures aim to “minimise the impact on affected colleagues, maximise opportunities for redeployment, and provide enhanced financial and practical support for those whose roles are ultimately confirmed as redundant.” The package, they claimed, represents a “generous and supportive approach” that balances the needs of the organization with the well-being of its staff.

PeopleCert, which now owns the majority of City & Guilds’ operations, has been actively working to restore its reputation since the acquisition. The company has faced scrutiny over its plans to restructure the organization and its potential impact on the UK’s vocational training landscape. Founded in 1878 by the City of London and a group of 16 livery companies, the City & Guilds brand was previously managed by the City & Guilds London Institute (CGLI), a charitable entity that had pledged to use the £166 million profit from the sale to fund initiatives in vocational education and support underserved communities.

However, the December 2025 revelations about the compensation of City & Guilds’ top executives have cast a shadow over these efforts. The Guardian reported that the two most senior directors, Kirstie Donnelly and Abid Ismail, received substantial salary increases and million-pound bonuses shortly after the sale. These payments, which were not disclosed publicly at first, have drawn criticism from stakeholders and prompted two separate investigations: one by the Charity Commission and another by PeopleCert itself.

This week, PeopleCert’s internal inquiry concluded that Donnelly and Ismail had awarded themselves bonuses totaling nearly £3 million “without authorisation from, or knowledge of, their superiors.” The findings have intensified pressure on the company to justify its financial decisions. Lawyers representing Donnelly and Ismail have defended the actions, stating that “all bonus payments referenced in PeopleCert’s statement were approved, documented, and implemented as part of the wider transaction process.” They are set to present evidence in court to support their position.

Meanwhile, CGLI has announced its own investigation into the sale. The charity stated that the inquiry, led by a king’s counsel, will seek to “establish a clear, evidence-based understanding of the factors behind the strategic decision to sell the charity’s awarding, assessment, and training businesses.” This third review underscores the ongoing scrutiny of the acquisition and its impact on the organization’s mission to provide vocational training opportunities.

The controversy surrounding the sale has sparked broader debates about the role of private ownership in public institutions. While PeopleCert has emphasized its commitment to maintaining the quality of City & Guilds’ services, critics argue that the financial incentives for executives may have influenced the decision to offshoring jobs. As the investigations continue, the future of the organization remains uncertain, with stakeholders calling for transparency and accountability in its leadership.