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Logica to axe 250 UK jobs

As the economic slowdown continues to bite, systems integrator Logica is set to axe 5% of its UK workforce in a bid to remain...

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As the economic slowdown continues to bite, systems integrator Logica is set to axe 5% of its UK workforce in a bid to remain profitable.

The company will formally announce the loss of 250 positions in the UK in two to three months time, following consultation with staff.

"We are taking steps to address the balance between resources and requirements and we are looking at steps that will see [the elimination of] 5% of the UK workforce," a Logica spokesperson told CW360.

Earlier this month the company reported a 39% increase in profits, largely as a result of its "one-stop shop" strategy that offers customers a complete service from the design of a project to its execution.

Robert McKellar, an industry analyst at Frost & Sullivan, questioned Logica's motives.

"Personally, I don't see it as a sound thing to get rid of people in hard times, because hard times turn into good times. Having said that, it's indicative of the current market and totally acceptable," he added.

The systems integration market has not been hit as hard as other areas of the industry. While companies such as Accenture and Logica's competitor, Cap Gemini Ernst & Young, have made job cuts - with the latter recently axing 6% of its international workforce - hardware vendors have been hit much harder.

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