City & Guilds Cancels UK Redundancies and Offshoring Jobs to Greece

City & Guilds, a prominent vocational training organization, has announced that its owner, Greece-based PeopleCert, has scrapped plans for mass compulsory redundancies and the offshoring of hundreds of UK roles to Greece. This development signifies a significant retreat from a controversial cost-cutting strategy that had sparked widespread concern among unions and the public.

PeopleCert acquired City & Guilds' commercial awarding and skills training businesses in October 2025. This acquisition was part of PeopleCert's strategy to expand its global footprint and substantially increase its revenues. Following the acquisition, PeopleCert outlined a £22 million cost-cutting drive for City & Guilds. The plan included reducing approximately 400 UK positions and relocating hundreds of jobs to Greece, where personnel costs were estimated to be up to 50% lower. Initially, 75 compulsory redundancies were announced.

The proposed job cuts and offshoring were met with strong opposition from the Unite union, which threatened potential legal and industrial action. The union alleged that PeopleCert had unlawfully withheld key information during transfer consultations and had advertised new roles in Greece without first offering them to staff at risk of redundancy in the UK. However, an announcement on June 18, 2026, confirmed that negotiations between Unite and PeopleCert had resulted in a financial settlement for the limited number of workers currently facing redundancy, largely avoiding compulsory job losses.

This development once again highlights concerns in the UK labor market regarding the impact of corporate acquisitions on employment. The balance between a company's pursuit of cost optimization and efficiency and the job security of its employees becomes a critical issue, especially after international takeovers. PeopleCert's reversal serves as an example of how union pressure and public outcry can influence corporate strategies. S&P Global Ratings had previously upgraded PeopleCert to B+ from B but revised its outlook to negative due to anticipated increased leverage post-acquisition of City & Guilds, citing the acquired business's lower profitability and potential execution risks.

The sale of City & Guilds itself was controversial, given its 148-year history as a charity. The City & Guilds London Institute (now known as the City & Guilds Foundation) has launched an independent inquiry to understand the factors behind the decision to sell the charity's business and the governance processes followed by its trustees. Furthermore, reports emerged of significant bonuses paid to City & Guilds' former CEO and CFO shortly after the sale, leading to their termination and PeopleCert potentially seeking to reclaim these payments through legal action. These situations underscore the importance of corporate governance and ethical standards in mergers and acquisitions.

Looking ahead, the Unite union has stated it will remain vigilant regarding PeopleCert's future direction for City & Guilds. It is believed that PeopleCert is attempting to improve its public image with this decision, prioritizing long-term organizational needs over immediate cost-cutting goals. The company has stated that measures have been agreed upon to minimize the impact on affected colleagues, maximize opportunities for redeployment and voluntary redundancy, and provide enhanced financial and practical support for those whose roles are ultimately confirmed as redundant. This may reflect market expectations for companies to consider social responsibilities alongside operational efficiency targets.