Stone Group has acted swiftly to counter the slowdown in public sector spending by making a little over 10% of its workforce redundant.
The Staffordshire-based system builder is taking this action ahead of the autumn spending review to be published in October, when the government will reveal the extent of departmental budget cuts.
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James Bird, chief executive at Stone, said it had already noted that projects were being delayed and budgets put on ice.
"We have made a number of streamline redundancies in areas where there has or will be government cuts. If the market is going to be tough we need to batten down the hatches," he told MicroScope.
Twenty eight of the 260 full time roles at the business have been put on notice of redundancy.
Earlier in the summer Stone was one of the firms that made it onto Buying Solutions Commodity IT Hardware and Software framework agreement but the sales recorded under the programme have fallen short of industry expectations.
Other sources noted a slowdown in central government spending, as previously announced there has been a moratorium on projects over £1m, but are waiting with baited breath for further developments.