IT outsourcing firm Logica plans to make 1,300 redundancies, 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."
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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.