Global Secure Systems has cut sales and back-office staff in reaction to the massive budget reductions across the public sector.
The Worthing-based specialist security reseller generates around half of its turnover from the government space - hit hard by the austerity measures introduced by the coalition - and is cutting its cloth accordingly.
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"Nobody expected the public sector to turn off in the way it has and with the benefit of 20/20 vision I would have made changes sooner," GSS managing director David Hobson told MicroScope.
He claimed five staff were leaving the firm - way below the double figures purported by channel sources - but conceded the workforce had fallen from 61 at the end of 2009 to 40, through natural attrition and cutting under-performers.
In the last filed results for the year to 31 December 2009, sales grew nearly 15% to £11.6m but losses of £389,000 were largely unchanged on the previous year.
The plans for 2011 include hiring in the finance verticals which represent a small portion of GSS' sales but is "waking up again" as a sector and opening an office in the City in the next six to twelve months.
Hobson said it was also looking to hire staff to set up a northern office, will potentially bolster its consultancy team which he claimed was running flat out and had secured the PCI-certified Qualified Security Assessor badge.
"I can see my pipeline for the business in the year ahead, if I was selling just tin I'd be worried," he said.