IT recruitment and outsourcing company Xansa is to cut 150 jobs despite increased half year profits. The company had already axed 100 jobs in November 2001.

Job cuts were announced even though first half pre-tax profits showed a strong rise, up 54% to £23.1m on a turnover up 32%. Turnover was up 67% over the same period last year to £27.9m.

Xansa recruitment saw ‘exceptional growth’ in the six months ending 31 October because of ‘more targeted offerings’, claimed executive chairman Hilary Cropper. Due to the downturn in the recruitment market this division is expected to revert to its previous level, she added.

Most of the jobs will go in the business change consulting unit, which has suffered strongly in the current economic climate. Aside from this unit Xansa’s outlook remains strong, said Cropper.

‘The immediate future is hard to read. Post 11 September, the initial reaction of many organisations was to cut discretionary spend. We remain extremely bullish on the long term,’ she added.

Formerly known as FI Group, the rebranding of the company on 1 May 2001 was a ‘success’. According to Cropper, rebranding has ‘achieved its aim of pulling together the position that is helping us secure business.’

In September 2001 the company pulled out of the permanent recruitment market to focus on their contractor business.