Feeds

StepStone shuts down UK office, cuts back in Europe

More than 500 staff axed

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Online recruitment agency StepStone has shut down its UK office with the loss of 135 jobs and pulled back in Norway, Sweden, Finland, Netherlands and Luxembourg to the tune of 526 jobs. The decision comes on the same day that StepStone released its Q3 results and announced a new CEO.

An announcement on the company's site reads: "The Board has commenced a major reorganization of the StepStone business with the objective of accelerating the company's move to profitability and cash generation. Over the last two years the company has built a strong pan-European brand and established itself in 17 countries across Europe. At the end of Q3 it had a headcount of 876.

"Whilst a number of these country units are now EBITDA positive losses and cash deficits are being incurred in other countries. The company's cash position, together with the current status of the financial and business markets, have lead the Board to decide that the company cannot sustain the current level of investment across Europe. Therefore it has decided to reorganize the business around the best performing countries, exit a number of markets in which it continues to be loss making or require substantial continued investment to achieve profitability.

"The company will also be substantially reducing its headquarters functions and moving to a regionally based business model. As a result of this plan, the intention is that the headcount will be reduced to less than 350."

The company will continue to run skeleton operations in all European countries, except the UK, which the company singled out for its "disappointing" results. The posting reads: "[StepStone] has also informed its subsidiary in the UK that it will not continue to provide it with financial support." A company spokesman confirmed that the liquidators had been sent in this morning. Staff will not receive a redundancy payout.

The company was known to be in trouble in July, when it had €46.9 million in the bank but operating expenses of €47.8m, against revenues of €17.1m. It now has €22.5 million in the bank with revenue down to €13.4 million.

Today's posting warns that if this round of cost-cutting fails to work, the whole company may go into liquidation: "It is the Board's opinion today that the actions taken to date will ensure that the current cash and cash equivalent balance is sufficient to allow the company to complete the planned fund raising process and continue to trade as a going concern during that process. However, if sufficient funds are not forthcoming within the planned timescale the company will be unable to continue trading as a going concern."

StepStone has built itself a big brand name across Europe but at enormous cost. In the UK, it has spent a small fortune on TV advertising - which has rarely proven to be effective at getting people to Web sites - as well as having sponsored a whole range of TV programmes. The UK Web site now has nothing but a graphic and the message: "Site currently down, more information soon."

Related Link

If you want to learn more, go here.

Related Story

Stepstone needs more money
Letsbuyit wins €4m investment

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.