Up to 500 people working on the NHS project for US IT services firm CSC could lose their jobs.
The cuts come because CSC has completed much of the development work on its troubled NHS patient record contract with the NHS, which is part of the NHS National Programme for IT (NPfIT).
According to a TechWeek Europe report, CSC has begun a consultation in the UK. “We can confirm that, regrettably, we have recently started a formal 90-day consultation process in the UK which could reduce the number of people working on our NHS account by up to a maximum of 500 people,” CSC told TechWeek Europe in an e-mailed statement.
“This action is necessary mainly because we have now substantially completed many key development activities with the NHS, and are now moving away from a focus on development work,” said the statement.
In its financial results last week, CSC said it wrote off $204m (£129m) relating to its NHS contracts.
CSC has had a troubled history with its NHS deal. The Department of Health said 12 months ago that it was considering scrapping the contract, following a series of missed milestones.
But in May last year, MPs were told that it might cost more to scrap the contracts than to continue with them, potentially exposing the government to a damages claim for breach of contract.