IT outsourcing firm Logica plans to make 1,300redundancies, with about 500 of them
in the UK.
The cost-cutting move comes as the firm plans to more than
double the number of cheaper staff in its offshore operations,
including
India.
The plan comes out of a business review of the company started
by Andy Green when he became CEO this January.
The company's offshore and "nearshore" headcount will be more
than doubled to 8,000 by the end of 2009, said Logica.
The company also plans to rationalise its property portfolio to
further cut costs.
The £110m restructuring programme will deliver increased cost
savings, reaching an annualised amount of around £80m from 2010,
said the company.
Green said, "I am confident that this plan will allow us to
outperform the market and revitalise Logica, delivering sustained
value for shareholders, customers and employees alike."
Logica said its UK business "underperformed the market in 2007"
and it will be looking for a big improvement following its
restructuring programme.
The UK redundancies will result in UK customers increasingly
seeing their IT contracts serviced by overseas staff.
In mainland Europe, "where growth has been strong", about 2% of
staff are expected to be made redundant, said the firm.