IT giant Kainos to lay off 190 staff

One of the north’s biggest IT firms Kainos is laying off 190 staff, which is about 7% of its 3,000-strong workforce.

The bulk of the job losses could come in Belfast.

It comes as the company says it is experiencing a tough trading environment, with clients delaying decisions on major projects.

And the decision had an immediate impact on the Kainos share price, which tumbled by more than 4% on Tuesday to around 667p.

That’s almost half of when it was just nine months ago (1270p), and less than a third of its all-time high of 2052p in November 2021.

In a statement Kainos said:” “This decision was made with careful consideration and a focus on the long-term growth opportunities of our business.

“While our business fundamentals remain strong, this step allows us to manage costs responsibly while continuing to support our customers.

“We recognise that this means saying goodbye to talented colleagues who have made valuable contributions to Kainos. They leave with our deep gratitude, and we are committed to supporting them in their transition to new opportunities.”

In December Brendan Mooney was re-appointed as group chief executive of Kainos, with incumbent Russell Sloan stepping down with immediate effect.

Originally joining Kainos in as a trainee software engineer in 1989, Brendan Mooney rose to become its chief executive in 2001 and taking it from a modest private company to an international business operating in over 20 countries.

He also overseen its stock market flotation in 2015, helping make it one of the most successful businesses to ever emerge in the north.

But when he left, the firm’s fortunes appeared to take a downwards turn, mirrored in the trajectory of the group’s share value.

In November Kainos recorded an adjusted pre-tax profit of £38.2 million in the first-half of its trading year, 1% higher than the same period last year, but revenue was down 5% to £183.1m in the same period, with overall bookings falling by 11%.