City & Guilds, one of the UK’s most historic vocational training bodies, is cutting its domestic workforce as part of a £22 million cost-reduction programme following its acquisition by a private Greek certification company.
The move comes just months after the sale of City & Guilds’ training and awards arm to PeopleCert, raising concerns about job losses, offshoring and the future role of a cornerstone institution in Britain’s skills system.
Founded in 1878 by the City of London and 16 livery companies, City & Guilds helped shape the UK’s national technical education framework, delivering qualifications and apprenticeships across sectors ranging from engineering and manufacturing to hospitality, hairdressing and horticulture.
Private takeover triggers restructuring
In October, City & Guilds confirmed it had sold its training and awards business, City & Guilds (C&G), to PeopleCert for an undisclosed sum. PeopleCert is an international certification group headquartered in Greece, with a growing presence in global professional accreditation markets.
In a recent investor presentation published on its website, PeopleCert described the acquisition as a “compelling opportunity” to transform C&G into a “leaner organisation” and unlock significant savings.
The document outlines plans to identify £22 million in cost reductions at City & Guilds, including £13 million in what it described as “personnel cost synergies”.
UK jobs to be replaced through attrition
Rather than large-scale redundancies, PeopleCert plans to reduce UK staffing levels primarily through attrition, by not replacing employees who leave the organisation.
City & Guilds currently employs around 1,800 staff, with internal figures suggesting an annual churn of approximately 340 employees. Under the restructuring plan, around a third of those roles will be relocated to Greece, where PeopleCert estimates employment costs are up to 50% lower.
A further third of roles will not be replaced due to what the company describes as overlapping functions following the takeover, while the remaining positions are expected to be rehired within the UK.
The strategy is expected to reduce personnel costs as a share of revenue from 69% to 54% within two years, with a longer-term goal of matching PeopleCert’s group-wide ratio of 26%.
Shift from charity to corporate model
PeopleCert’s presentation states there is a “clear opportunity to transition C&G operations from a non-profit business model to a best-in-class, lean corporate structure, unlocking further profitability”.
The language marks a significant departure from the traditional image of City & Guilds of London Institute (CGLI), which has historically focused on widening access to skills and improving employability across the UK workforce.
The institute counts well-known figures such as television gardener Alan Titchmarsh, celebrity chef Ainsley Harriott and fashion designer Karen Millen among its alumni.
Foundation defends sale and future direction
CGLI has defended the sale, arguing it will strengthen the organisation’s long-term mission rather than undermine it.
A spokesperson said the deal would unlock new opportunities for City & Guilds, particularly through access to new technologies that could improve training delivery in an increasingly digital and AI-enabled education landscape.
They acknowledged that some roles would change through natural attrition but said others would be created through strategic expansion, improving efficiency and outcomes for learners and employers.
The proceeds from the sale have been retained by CGLI, which now operates independently as a social impact charity under the name City & Guilds Foundation.
Significant funds secured for UK skills programmes
While the exact value of the sale has not been disclosed, the foundation said it now holds approximately £180 million to £200 million in gross assets under management.
The funds are intended to secure the charity’s long-term sustainability and support its continued commitment to skills development across the UK.
The City & Guilds Foundation focuses on programmes designed to help people progress in work, including bursaries, targeted training initiatives and funding for displaced workers, former offenders and people from lower socioeconomic backgrounds.
PeopleCert retains brand amid silence
PeopleCert did not respond to requests for comment on the workforce changes or offshoring plans.
The company has confirmed it will retain the City & Guilds brand for its training and qualification programmes, maintaining its visibility in the UK and international education markets.
The developments come at a time of heightened political focus on skills shortages, productivity and workforce development in the UK, with ministers repeatedly stressing the importance of domestic training capacity amid economic uncertainty and rapid technological change.
