ACCOUNTANCY software firm Sage yesterday said it had cut 700 jobs since October as part of cost-cutting measures during the recession.

The group said 200 jobs had been lost in the UK as part of the restructuring move, which involves about five per cent of its 14,500 global workforce.

Newcastle-based Sage said the cost-cutting plans will save £49.3m a year.

The job cuts came as the group moved to allay fears over sliding revenues after announcing a 14 per cent rise in first-half profits and “resilient”

trading. Sage was among the FTSE 100 Index’s top performers despite the impact of the recession on underlying revenues, which shrank four per cent.

Software sales were down 15 per cent, although this was partially offset by growth in subscription revenues, such as support services to customers.

But the firm – whose Line 50 product is among its bestknown UK software – said that renewal rates for support contracts were steady at 81 per cent.

Pre-tax profits were up to £139.2m in the six months to March 31, although stripping out the impact of the weaker pound and restructuring costs gave a three per cent rise.

Chief executive Paul Walker said: ‘‘After a robust performance last year, we are now experiencing the effects of the weakening global economy in most of our markets, with customers delaying software purchasing decisions.

“However, demand for highquality customer support remains strong.”