Avelo has put a number of its 400 staff under consultation following the merger and rebrand of 1st Exchange, N4 and Screen Business in March.
One Avelo employee, who wishes to remain anonymous, says the move was announced internally last week and will affect product analysts, software technicians and project managers across the firm’s sites in Cheltenham, Warwick and Woking. He says staff at N4’s base in Cirencester will be unaffected.
He says: “Just last month they had a lavish launch and were talking like we were going to conquer the world. Now the people who actually build the products are facing the axe. Projects and products are going to have to be restricted or cancelled as a result.”
Avelo refused to confirm how many staff will be affected.
A spokesman says: “We have embarked on a transition programme as we transform our business into a single organisation as Avelo. Consequently, we will be consulting a number of staff throughout May about how this will affect their roles in future.”
1st Exchange acquired Screen Business, a firm which supplies websites and internet applications, in February and bought software provider N4 Solutions last June.
In August 2009, Lloyds TSB Development Capital bought a majority stake in 1st Exchange in a £115m deal.