Shock for workers as software giants Sage cuts jobs

Apr 10 2009 by Paul James, The Journal

THOUSANDS of workers at software giants Sage were last night fearing for their futures after the firm announced plans to cut jobs.

All of the company’s staff – including 1,600 at their Newcastle headquarters – have been invited to apply for voluntary redundancy.

Bosses told The Journal they hope to avoid compulsory job losses and say the move is part of plans to cut costs in light of the economic downturn – but workers revealed their shock at the announcement.

Paul Stobart, Sage’s UK and Ireland managing director, said: “The changing market we’re in means that it is more important than ever to look at the costs we incur as a business and how we can become even more effective in the way we work.

“As all businesses are at the moment, we’re doing everything that we can to keep costs to a minimum and in addition we’ve let our people know today that we are offering our UK staff the chance to take voluntary redundancy.

“We felt that a voluntary redundancy programme would offer people the chance to consider opportunities beyond Sage and help us reduce headcount and costs.”

Sage was formed by Graham Wylie in 1981 and went from strength to strength, becoming the only technology stock on the FTSE 100.