Jobs axed at RM (From The Oxford Times)

Jobs axed at RM

12:00pm Tuesday 27th July 2010 in

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Schools computer company RM is axing jobs following the scrapping of the Building Schools for the Future Programme.

Phil Hemmings, director of corporate affairs at the Abingdon-based firm, said the number of redundancies would be in the “low double digits at most” following the Government’s announcement the scheme was being dropped earlier this month.

He added: “We are in the process of consulting with a number of staff and our expectation will be that some will leave the business.

“It will impact on specialist roles to do with bidding for BSF programmes as we built a team specially to do that.”

In a statement, RM said it will be completing all its BSF projects for 2010 and more than 80 per cent of those lined up for 2011. It has sealed deals on 15 schemes worth £272m.

But just 40 per cent of those expected in 2012 and beyond will be completed.

The company has already released all its contractors and the restructuring will cost a total of £1.5m.

Mr Hemmings said efforts were being made to develop other areas of the business to help compensate for the loss of BSF including growing its presence in the United States and providing materials to schools other than computers including text books, wall charts and arts and crafts equipment.

The Department for Education has also said “frontline” education budgets will be maintained which will allow RM to bid for future contracts.

Mr Hemmings said: “In two years time we are expecting our turnover will not have increased as much as it would have done with BSF.

“It would be completely foolish to say we will close all that gap. But we are not expecting to see an impact on our profit and we will still see growth.”