A Belfast-based IT firm has announced its axing 190 jobs in response to challenging trading conditions which are causing clients to delay making decisions on projects.
Kainos plc, the only NI company listed on the FTSE 250, currently employs around 3,000 meaning that the number of redundancies equate to around 7% of its global workforce.
The move comes just months after the firm replaced its chief executive after telling shareholders to expect full year sales to come in below market expectations.
On Tuesday, Kainos confirmed it had made the “difficult decision” to reduce staff numbers in response to the “current market environment”.
“This decision was made with careful consideration and a focus on the long-term growth opportunities of our business,” a statement read.
“While our business fundamentals remain strong, this step allows us to manage costs responsibly while continuing to support our customers.
“We recognise that this means saying goodbye to talented colleagues who have made valuable contributions to Kainos.
“They leave with our deep gratitude, and we are committed to supporting them in their transition to new opportunities.”
Just last April the company was given planning permission to build new 14-storey city centre headquarters on Dublin Road with construction reportedly due be finished in early 2027.
In November, Kainos reported a 5% fall in revenue to £183.1m in interim results for the six months to September 30, 2024.
But Kainos said it had maintained profitability with a 1% decline in adjusted pre-tax profits to £38.2m.
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While it had strong growth in its Workday products division, it said there was a subdued services market amid a tougher trading environment.
The figure for adjusted pre-tax profit included a £1.2m investment to support its partnership with Workday.
Overall bookings were 11% lower at £179.5m, down from £201.9m. But there was a 8% rise in contracted backlog at the end of the six months to £354.1m, and a strong cash position of £151.6m.
The company operates across three divisions – digital services, Workday services and Workday products.
Then in December, the company’s former chief executive Brendan Mooney made a surprise return to his old job which he retired from in September 2023 after 22 years in charge.
His successor Russell Sloan stepped down with immediate effect.
After being reappointed, Mr Mooney insisted there is “significant growth opportunities” for the business and said his time off had given him “a fresh perspective” on future potential”.
Kainos chair, Rosaleen Blair, thanked his predecessor insisting the Mr Sloan left “with our gratitude and respect and we wish him every success in the future”.
Mr Sloan said: “It has been a privilege to work with so many talented people over my 25-year career in Kainos and I’m tremendously proud of everything we have achieved and delivered for our clients.”