Nine design jobs have been cut at PSD Associates, blamed on the general climate of change in the industry and a specific downturn in the telecoms sector.
In total 11 jobs were cut at the consultancy last week, leaving 71 full time staff, around 56 of which are designers. No more redundancies are anticipated.
“We cannot continue to support the levels of staff we have sustained until now,” says managing director Mark Southwood.
A substantial tranche of the group’s business is in the IT, telecoms and technology sector, which has been buoyant for the past few years. The sector is now experiencing a downturn, which has “had an effect on [PSD’s] business”, says Southwood.
Southwood plays down wider causes for concern in the design industry. “There is no reason for people to worry. We are not entering a recession, but [PSD has] just taken a hit from the [IT] sector,” he says.
The reason for the redundancies is a mixture of caution to pre-empt a possible industry downturn and technology clients reducing their budgets, Southwood adds.
As a result of the shifts in the industry, PSD is rethinking its client base and is “putting more weight behind non-technology, business-to-consumer and fmcg clients”.
“We would be daft to turn away from the IT sector completely but we must have a more balanced business than before,” he says.