RM Starts Staff Consultation Process As Job Cuts Loom

26th Jul 2010 08:24

LONDON (Dow Jones)--U.K. provider of educational products and services RM PLC (RM.LN) Monday said it has begun consulting staff at its strategic projects bid team following the U.K. government's decision to cut spending in schools, and that fiscal 2010 restructuring costs will depend on the outcome of this process. RM is likely to redeploy and lay off staff who had been working on projects under the government's Building Schools for the Future, or BSF, program, after plans were announced to reduce spending in schools and review on a case-by-case basis projects that are only "close to" financial close. RM said it has acted immediately to reduce costs associated with bidding for BSF projects by reducing contract staff and external spend. It has now also started restructuring its strategic projects bid team, refocusing on non-BSF projects. The company said restructuring costs for fiscal 2010, ended Sept. 30, will depend on the outcome of the consultation process, but it has put aside GBP1.5 million against the costs, to be booked in the second half of the fiscal. It also expects to shoulder about GBP1.5 million of strategic project bid costs in fiscal 2011. -By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; [email protected] Order free Annual Report for RM PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB0002870417 or call +44 (0)208 391 6028 (END) Dow Jones Newswires July 26, 2010 03:24 ET (07:24 GMT)