Checkit is to make redundancies following the collapse of its bid to acquire fellow PLC Crimson Tide.
The Cambridge firm blamed the UK National Insurance increase and the introduction of US trade tariffs for the cutbacks, which it said are contributing to uncertainty and caution among its customers.
Following a long-running all-share takeover of Crimson Tide plc, the required majority of shareholders in Checkit PLC did not back the deal, with 51% voting in favour and 49% against towards the end of last month.
Following the news, Crimson Tide chair Jacqueline Daniell, a former CEO at the firm, said she would step down from the position and from the company’s board.
Checkit, an augmented workflow and smart sensor automation company for frontline workers, has now conducted a review of its operations and cost base.
It will now implement measures to deliver annualised cash savings of approximately £3m, including a restructuring which – subject to a consultation process – will result in a reduced number of roles across various departments.
The measures will involve one-off exceptional cash costs of approximately £400,000 in the current year.
Checkit said the US remains the priority region responsible for driving new customer acquisition. In FY25 23% of US bookings came from new customers.
“While recent US trade tariffs contribute to economic uncertainty, based on our current understanding, they are not expected to have a material impact on Checkit’s revenue or cost base,” it added.
“We are refining Checkit’s operating model to improve efficiency, to enhance performance, and to accelerate our transition to profitability,” said CEO Kit Kyte.
“By streamlining costs and focusing resources on key areas, we are strengthening the business for long-term success.”