IT recruiter Spring has reduced its headcount to save a workforce cull next year. And Servoca, the public sector outsource provider, has undergone a major restructure cutting administration and operational roles.

“Reducing headcount now will save many more job cuts next year,” Peter Searle, chief executive of Spring, told Recruiter, which exclusively revealed on 26 November that the firm had planned a 10% headcount reduction worldwide.

“By moving early it puts you in a better position not to have to cut a second time,” said Searle. “It is better to make the choice early rather than doing people favours by allowing them to hang around,” he added. Most of the reduction would result from not replacing staff who left rather than making redundancies.

He explained that a number of staff employed during the company’s growth phase had left the company. “We don’t need eight internal recruiters — that has gone down to three,” he said.

Searle said that deciding which staff should go was “a difficult set of choices” but keeping “wealth-creating staff” was “prudent”. He emphasised that the process had to be “fair and ethical”.

Spring has seen a rapid phase of organic growth having opened 18 UK and offices and seven overseas in the last year.

Meanwhile, in a recent trading update to shareholders, Servoca announced the final stage of a major restructuring and £1.5m cost reduction exercise.

The statement said: “Following significant organic and acquisitive growth during the 12 months up to 30 September, the board has streamlined the group ensuring that a clear and more efficient structure is in place.”

Restructuring, cost reduction and elimination of loss making activities include:

• revising the group’s management structure and streamlining operational management
• restructuring two healthcare and training subsidiaries
• continuing to rationalise front and back office systems across the group
• reducing the number of admin and operational staff.

Andy Church, former managing director of IT recruiter Lorien, has replaced Darren Browne as chief executive of Servoca. Browne resigned from the board on 24 November.