City & Guilds Executives Awarded Million-Pound Bonuses Amid Cost-Cutting Measures

City & Guilds executives, including Chief Executive Kirstie Donnelly and Finance Director Abid Ismail, have received substantial bonuses of £1.7 million and £1.2 million, respectively, following the organization's acquisition by PeopleCert in October 2025. This financial windfall comes at a time when City & Guilds, a long-established skills charity, is undergoing significant restructuring and workforce reductions as it transitions into the private sector. Donnelly's salary has also increased by £100,000 to approximately £430,000, while Ismail's salary has risen by 30%, bringing it to around £300,000.

The Guardian

Founded in 1878, City & Guilds has a rich history in technical education, providing qualifications and apprenticeships across various fields. The organization was previously owned by the City & Guilds London Institute (CGLI), a charity that announced the sale of its training and awards operation to PeopleCert, resulting in a cash influx estimated between £180 million and £200 million. This sale was framed as a strategy to secure the charity's future and enhance investment opportunities for the now-privatized training business.

The Guardian

In a recent presentation to its financial backers, PeopleCert outlined plans to achieve £22 million in savings at City & Guilds, with £13 million expected from personnel cost synergies. The strategy includes relocating a third of the jobs to Greece, where labor costs are significantly lower, and not replacing many departing staff members. The organization currently employs over 1,600 staff and has a churn rate of approximately 300 employees annually. This restructuring raises concerns about job security and the future of the workforce.

The Guardian

A spokesperson for City & Guilds stated that the charity CGLI would publish its accounts in January 2026, which will include details on pay and remuneration. They emphasized that bonuses for eligible employees are aligned with CGLI's remuneration policy and that no payments outside existing bonus schemes have been made. The spokesperson also noted that the transaction secures the long-term future of the charity while unlocking investment for the commercial training business.

The Guardian

The awarding of large bonuses to executives amid significant cost-cutting measures has drawn criticism. Observers question the appropriateness of such financial rewards when the organization is reducing its workforce and restructuring its operations. Critics argue that this could undermine the charity's mission and the trust of stakeholders who rely on its vocational training services.

The Guardian

While the bonuses and salary increases have been confirmed, the exact implications of the cost-cutting measures on the workforce remain unclear. The presentation detailing the savings has reportedly been removed from the PeopleCert website, leading to speculation about the transparency of the restructuring process.

The Guardian

“Bonuses for eligible employees reflecting performance in 2025 are payable in line with CGLI remuneration policy.” — City & Guilds Spokesperson

The Guardian

“At the same time, this transaction unlocks future investment for the commercial awarding and training businesses that continue to operate in a highly competitive marketplace.” — City & Guilds Spokesperson

The Guardian