Lipsync Group is making five people redundant as a precautionary move to help the company deal with the impact of the current depressed economic climate.

Most of the affected staff - who account for 7% of its 80-strong workforce - are freelancers from the film division whose contracts will not be renewed. The move will reduce overheads at Lipsync.

Managing director Alasdair MacCuish dispelled industry rumours that the cutbacks were the result of non-payment for work.

He said: “This is a pre-emptive and not a reactive measure and the job losses have been kept to an absolute minimum. We hope it will ensure we remain a healthy company that can compete effectively in an aggressive marketplace.”

Meanwhile, the company has also taken on the former managing director of Cineserve Jason Tufano. He will head a new division called LipSync Technical Services.

The division was set up last month to organise film and broadcast deliveries for major studios and independent production companies.

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