Cara Group, a Dublin-based technology firm, has shed almost 20 per cent of its staff in its second major rationalisation this year. The firm made 32 of its 175 full-time staff redundant yesterday as part of a business transformation process which began in June. A company statement said all non-core activities across the Cara information technology solutions firm were under review.

Cara Group will merge its distribution and logistics operation, consolidate service departments and reduce its sales and administration staff under the current process. Mr David Little, managing director of Cara, said changing market conditions had demanded a re-examination of the business structure. "We need to grow our business aggressively," he said. "It is our intention to become as lean and as 'match-fit' as possible."

The statement said the firm intended to offer attractive severance packages and was examining whether it could relocate affected employees within the organisation.

A consultation process has begun with trade unions and employee representatives. Earlier this year, management at Cara, backed by Hibernian Capital Partners, bought the firm from French computer group Bull for €33 million (£26 million).