Security services company G4S has announced a restructuring plan today that involves investing in group technology to grow its security systems business, and jobs being ‘redeployed’.
The company is announcing the investment following a review of its business. G4S’s UK and Ireland chief executive, Richard Morris, recently resigned following a series of controversies surrounding the company’s work on public contracts. Yesterday the Serious Fraud Office (SFO) opened a criminal investigation into G4S and rival firm Serco over the government’s electronic tagging contract, where they have been accused of overcharging the government for years.
Ashley Almanza, who led the review when he was appointed CEO of the group in July, said: “G4S has strong fundamentals and these will be improved by changes to the way we manage the business.
“We will sharpen our strategic focus and strengthen our investment in customer service, organic growth, and technology and innovation.”
More specifically, G4S said that it “plans to extend technology capability across the group to grow our £800 million revenue security systems business to support and drive growth and profitability for our manned security offer”.
Following the review, the company said it has also identified 35 business to grow, restructure or “recycle capital”, and it will invest £15-20 million in sales, business development and capability in 2014.
In addition, it said it is establishing a “rigorous” performance management framework.
In terms of staff, G4S said that up to 400 posts are going to go under review, with staff being redeployed “where possible”. It did not provide a breakdown of the types of roles that would be affected.
Meanwhile, G4S provided a trading update today for nine months to 30 September, where it said that its pre-tax profits was in line with the same period in 2012.