23rd Oct 2013 11:51
LONDON (Alliance News) - Education services company RM PLC Wednesday said that it would be making layoffs of around 300 UK staff as it restructures its Educational Technology business following the completion of a strategic review.
The company said that it would now focus the ET business on expanding its existing software and services offering, exiting the declining and low margin sale of personal computers. As a result it will be making what it called a "significant reduction" to the scale of sales and marketing activities in the division.
Existing contracts to provide personal computers will be fulfilled, and the ET division will continue to provide third party infrastructure hardware, RM said. The company said that the winding down of its Building Schools for the Future projects would result in a 50% reduction in the ET division's revenue over the next two years and one off costs of GBP10 million.
Shares in RM were trading down 6.2% at 116.36 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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