City & Guilds has confirmed it will no longer proceed with plans to make mass compulsory redundancies and to offshore hundreds of British jobs to Greece, reversing a cost-cutting strategy that had prompted significant concern across the vocational training sector.

The proposal to eliminate approximately 400 UK roles emerged last December, following the acquisition of City & Guilds’ training and awards business by PeopleCert, a Greece-based firm, in October. At that time, PeopleCert outlined a £22 million cost reduction plan, which included replacing departing UK staff with employees abroad. Initially, about 75 compulsory redundancies were implemented under this strategy.

The announcement had met with strong opposition from trade unions and industry stakeholders, raising the prospect of legal and industrial disputes. However, Unite union officials confirmed on Thursday that recent negotiations with PeopleCert had resulted in a financial settlement for the limited number of workers affected by redundancies, effectively averting large-scale compulsory job losses. Unite’s regional officer Peter Storey stated the union would continue to monitor City & Guilds’ future direction under PeopleCert ownership.

A City & Guilds spokesperson noted that measures agreed upon aimed to reduce the impact on staff by maximizing redeployment opportunities and voluntary redundancies, alongside enhanced financial and practical support for those whose roles were ultimately made redundant.

The decision to abandon the initial offshoring and mass redundancy plans comes amid PeopleCert’s efforts to improve its public reputation following its acquisition of City & Guilds last year. Founded in 1878, City & Guilds was previously operated by the charitable City & Guilds of London Institute (CGLI), which is set to use its £166 million from the sale to fund ongoing charitable activities.

Controversy surrounding the transaction deepened in December when it was revealed that City & Guilds’ two most senior directors, former chief executive Kirstie Donnelly and finance chief Abid Ismail, had received million-pound bonuses and substantial salary hikes from PeopleCert post-sale. The Charity Commission subsequently launched a statutory inquiry, while PeopleCert initiated its own internal investigation.

This week, PeopleCert’s investigation concluded that Donnelly and Ismail awarded themselves nearly £3 million in bonuses without superiors’ knowledge. Both executives’ legal representatives have denied these allegations and indicated they would present evidence in court demonstrating that all bonus payments were authorized, documented, and executed as part of the overall transaction process.