Revamp at Logica will cost 500 jobs in Britain
Some 500 British jobs are to be axed at Logica as part of the IT giant's long-awaited restructuring plan.
A strategic review unveiled today by new chief executive Andy Green will see the UK bear the brunt of the global cuts of 1300, or 3%. The reduction represents 10% of the British workforce.
A spokesman said costs in the UK were considered too high. Just 2% of the workforce will go in mainland Europe. Logica will focus on "non-billable" positions - administration and support staff - with 15% of those jobs on the line.
Investor confidence began to fall last May after delays on a contract forced the group to make a £15 million provision. Green was brought in from BT in January to turn round the firm. The shares have risen in recent weeks in anticipation of his rescue package.
The £110 million restructuring is expected to deliver cost savings of about £80 million a year from 2010. Many jobs will go to India. A new centre in Chennai will be up and running by the end of the year.
Green plans to focus on organic growth, funding investment from cost savings, and says his priority will be British operations.
"I am confident that this plan will allow us to outperform the market," he said, identifying outsourcing as the fastest growth area. He said that would be increasing its share of group revenue to about 35%.
