A SOFTWARE firm employing more than 1,000 North-East workers is looking to cut back office costs - but bosses have vowed the move won’t affect staff.

Sage Group, which has a base in Newcastle, says it has identified areas to improve the business, which include reducing costs to increase spending.

Speaking in a trading update, Stephen Kelly, Sage’s chief executive, said changes would come in back office operations, raising fears over the potential impact on jobs.

However, a spokesman denied the suggestion when speaking to The Northern Echo, saying the move will look at removing duplicative systems and software, rather than workers.

The plans were revealed as Sage reported a rise in subscriptions, particularly in Europe, helped drive revenues up by 5.3 per cent in the three months to December 31.

Mr Kelly said: “It’s business as usual, but we are plotting the future.

“A lot of the focus is around acceleration and the pace of execution because the strategy is all well and good.

“There are opportunities on the cost side and efficiencies to improve that and shift towards investing for growth in areas like digital marketing

“That is one where the most innovations companies and leading the way and we want to make sure Sage is at the head of the pack.

“We would like to make sure the back office is efficient because it’s area where we think we can make significant savings to drive investment for growth.”

The company serves more than six million firms worldwide, offering management software and services, and operates Sage One, an online accounting platform, from the region.

It previously worked with Formula One team Marussia, providing software for engineers to monitor thousands of car parts.

Mr Kelly, who took over from Guy Berruyer, said it had also benefited from supporting small and medium-sized firms.

He added: “Those companies are the growth engine of the economy worldwide and our performance attests to the enduring quality of our relationships with them.

“We look forward to building on this position as a trusted partner to customers, and to being even more instrumental in supporting their future success.”

Sage previously agreed a £97m deal for US payroll and HR company PAI Group.

Known as PayChoice, it provides services for small and medium-sized businesses, and is expected to strengthen Sage's position in the US’ payroll market.