Recruiter Gattaca PLC (LON:GATC) is to pull out of telecom contractor operations in a number of countries.
Gattaca will stop operating in Africa, Asia and Latin America, Dubai, Kuala Lumpur and Qatar, some of which are handled from the UK.
READ: Gattaca shares jump as permanent fee income rises in full year
As a result, offices in London and Bromley offices will also be shut and moved to one location.
Patrick Shanley, chairman said: “The withdrawal from these territories and Telco Infrastructure operations remove some very low margin business, which was tying up significant working capital and diluting the strength of our core operations.
The US is going well, he added, and a new hub will open in Atlanta, Georgia to work alongside the existing hub in Dallas.
In China, Gattaca also sees a shift towards engineering & IT permanent recruitment and a reduction in the legacy Telco market.
The businesses concerned represented approximately £7m of 2018 net fee income and made a small contribution to underlying profit.
Forecasts are broadly unchanged as these businesses are in decline, though the closures will mean a one-off cost of £3mln in 2019.
“Following this review, Gattaca can now focus on our strong core and growing businesses, in particular within UK Engineering, UK IT, and North America as well China and our recently acquired RSL Rail business," said Shanley.
All staff and customers affected by this process, are being notified, said the statement.