IT services company CSC is planning to cut 1,200 jobs from its 10,000 strong UK operations after putting itself up for sale last week.
CSC customers in the UK include Royal Mail, Whitbread, British Nuclear Group and retailer Etam. It is also prime contractor for the National Programme for IT in the North West region of England.
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CSC, which aims to cut 5,000 jobs, mainly in Europe, last month announced plans to double the size of its Indian operations from 5,000 to 10,000 staff by 2007.
Phil Codling, senior analyst with Ovum, warned CSC customers to remain on alert over service levels. “CSC’s employees have been through a lot in the past six months. These announcements can only add to their feelings of concern and insecurity, particularly in Europe. That’s a situation that can’t go on for long if CSC is to retain and motivate its staff.”
In August last year, the UK arm of CSC signed an agreement with Amicus, the UK’s largest private sector union, that promised no compulsory redundancies and committed to invest in the skills of its UK staff. The US-based services company employs 10,000 people in the UK.
Peter Skyte, national officer at Amicus told Computer Weekly the company was no longer guaranteeing no compulsory redundancies. “CSC is a highly profitable company making substantial profits from UK staff. A highly skilled UK workforce is being pillaged to pump up the share price in advance of a sale of the company.
“We will hold the company to its obligations to avoid compulsory redundancies and reduce the number of employees to be dismissed in the UK.”
CSC’s UK representatives said they could not comment.