British cybersecurity firm NCC Group to cut workforce by 7%
(Reuters) - Cyber security firm NCC Group said on Thursday it plans to cut more than 125 jobs as part of an ongoing strategic review, while flagging tough market conditions in the second-half period of the current fiscal year.
Shares of the Manchester-headquartered FTSE Mid Cap firm were down about 10% to an over two-and-a-half-year low of 147 pence in morning trade.
The company, which employs around 1,800 people globally, said the layoffs- accounting for 7% of its total employee count- will largely be focused in the UK and North America.
NCC said the job cuts would lead to a one-off implementation cost of 4 million pounds ($5 million) in the second half of the fiscal year ending May 31.
The company said delays in revenue recognition, particularly in North America and the UK, have weighed on annual outlook, and now expects single-digit revenue growth for the year.
NCC also forecast an 8% growth in annual adjusted operating profit at about 52 million pounds, after it reported an about 28% jump in first-half earnings.
($1 = 0.8082 pounds)
(Reporting by Raechel Thankam Job and Prerna Bedi in Bengaluru; Editing by Nivedita Bhattacharjee)