The vocational training body City & Guilds has formally abandoned plans for mass compulsory redundancies and the offshoring of hundreds of UK jobs to Greece, following a deal brokered between its new owner, PeopleCert, and the Unite union.
Job cuts cancelled
The climbdown comes after months of turmoil that began when the Greek-owned certification company acquired City & Guilds’ commercial awarding and training businesses in October last year. A presentation to PeopleCert investors had proposed removing roughly 400 UK roles and replacing staff with cheaper workers in Greece, part of a £22 million cost-cutting drive. About 75 compulsory redundancies were subsequently announced, sparking fury across the training sector and threats of legal and industrial action from Unite.
On Thursday, Unite confirmed that negotiations with PeopleCert had “secured a financial settlement for the limited number of workers currently being made redundant”, meaning compulsory job losses have been largely avoided. Under the agreement, the 75 roles at risk were made voluntary, with additional payments, positive references and outplacement support provided. Peter Storey, a Unite regional officer, said: “Unite will remain vigilant of the future direction of travel at City & Guilds under PeopleCert.”
A City & Guilds spokesperson added: “Measures have been agreed to minimise the impact on affected colleagues, maximise opportunities for redeployment and voluntary redundancy, and provide enhanced financial and practical support for those whose roles are ultimately confirmed as redundant. Together, these measures represent a generous and supportive package that delivers a positive outcome for affected colleagues while supporting the organisation’s long-term needs.”
Unite had earlier accused PeopleCert of being “dishonest” about its staffing intentions and of “unlawfully withholding key information during transfer consultations”. The union also claimed the company was advertising for new recruits while legally obliged to offer positions to staff at risk of redundancy.
Sale and bonus scandal
The acquisition that triggered the controversy saw City & Guilds London Institute (CGLI), the charity that owned the City & Guilds brand, sell its commercial awarding, assessment and training businesses – including City & Guilds Training, Gen2, Intertrain, ILM and The Oxford Group – to PeopleCert for an undisclosed sum. CGLI received net proceeds of approximately £166 million, which it said would be used to continue its charitable work, including funding vocational training for people in need. PeopleCert financed the deal with €150 million from Eurobank and existing company cash reserves.
However, attention quickly turned to the conduct of senior executives after the sale. It emerged that City & Guilds’ two most‑senior directors, former chief executive Kirstie Donnelly and former finance chief Abid Ismail, had been paid large bonuses by the new private company and received sizeable salary hikes. An internal investigation commissioned by PeopleCert concluded that Donnelly and Ismail had awarded themselves bonuses totalling nearly £3 million “without authorisation from, or knowledge of” their superiors. Specifically, Donnelly received a £1.7 million bonus and a £100,000 salary increase, while Ismail received a £1.2 million bonus and a 30 per cent salary rise. The investigation also found that bonuses for other senior executives, together with salary increases for Donnelly and Ismail, amounted to approximately £5 million from City & Guilds Ltd funds – all allegedly paid without proper authorisation from CGLI, the City & Guilds board, or PeopleCert.
The pay of the top six executives reportedly more than tripled after the deal closed. PeopleCert said it intends to take all available action to recover the £1.7 million and £1.2 million from Donnelly and Ismail respectively, and will make appropriate referrals to authorities. It also sought repayment of bonuses from other serving executive leadership team members, but said it would ratify bonuses paid to 60 other colleagues who were not fully aware of or instrumental in the scheme.
Lawyers for Donnelly and Ismail have denied the allegations, stating: “Our clients will present all their evidence to the courts in due course. That evidence overwhelmingly demonstrates that all bonus payments referenced in PeopleCert’s statement were approved, documented and implemented as part of the wider transaction process.” They indicated they will commence litigation against City & Guilds Limited. Donnelly and Ismail were initially placed on leave and have since left the organisation without receiving any financial settlement, according to sources.
New inquiries
The bonus revelations prompted the Charity Commission to open a statutory inquiry into CGLI in January 2026, examining the trustees’ decision‑making during the sale and the charity’s entry into a coexistence agreement with PeopleCert. The inquiry remains ongoing and may extend its scope if further regulatory issues emerge.
Separately, CGLI announced on Thursday that it will launch its own independent inquiry into the sale. The investigation will be “led by a king’s counsel … with the aim to establish a clear, evidence‑based understanding of the factors behind the strategic decision to sell the charity’s awarding, assessment and training businesses”. The timing of this inquiry has been closely watched, with the City & Guilds Action Group expressing disappointment at what it sees as delays.
City & Guilds was founded in 1878 by the City of London and 16 livery companies, and has operated as a charity, the City & Guilds London Institute, with the objective of alleviating barriers to skills and employment. The remaining charity, now operating as The City & Guilds Foundation, will focus on charitable works and social impact. PeopleCert, which became the first Greek “unicorn” after acquiring Axelos in July 2021, generates about 98 per cent of its revenue from outside Greece.
