Internet recruitment site Stepstone fuelled fears about the future of the dotcom economy when it announced it had axed 40 jobs due to "restructuring".
In a statement released on Tuesday, the company said the move came as it outsourced its production department to India, which would reduce its UK workforce by 16 people.
Stepstone’s offices in Birmingham and Milton Keynes will also close, which will leave a further 24 people without a job.
The company, which has operations in 16 European countries and India and employs more than 1,400 staff, has vowed to work with staff and their representatives to help them find jobs.
by Richard Staines