IT services company CSC plans to cut 1,200 jobs from its UK operations after putting itself up for sale last week.
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 at 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 is a situation that cannot 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 company employs 10,000 people in the UK.
Peter Skyte, national officer at Amicus, said CSC was no longer guaranteeing that there would be no compulsory redundancies. "A highly skilled UK workforce is being pillaged to pump up the share price in advance of a sale of the company," he said.
"We will hold the company to its obligations to avoid compulsory redundancy and reduce the number of employees to be dismissed in the UK."
CSC customers in the UK include Royal Mail, Whitbread and British Nuclear Group. It is also prime contractor for the NHS national programme for IT in the North West region.
CSC's UK representatives said they could not comment.