Logica cuts 1,300 jobs
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Services giant warns it will miss profit forecasts and prepares for recession in Europe with job cuts
Anglo-Dutch IT services giant Logica said on Wednesday that it would cut 1,300 jobs as a response to the worsening Eurozone situation.
"It has recently become clear that many of our clients are delaying short-term expenditure and reducing discretionary investments to weather an uncertain economic future," Logica said in a statement.
Logica, a consultancy and outsourcing services provider for government and the private sector, said that the 1,300 job losses would be split between the UK, Belgium, Sweden and the Netherlands, with about 225 jobs to go in the UK.
The cuts represent 3% of Logica's workforce, and were precipitated by a drop in expected revenue for 2011. Logica said full-year revenue growth expectations had dropped to 3% from 5%.
"We deeply regret the impact that job losses will have on the people affected in many of our businesses," said Logica CEO Andy Green. "But we are confident that it is best for our clients, people and shareholders that we face squarely into the difficult economic conditions ahead."
The cuts will initially cost Logica £93 million in job restructuring and property costs, but the company said it expected the move eventually to save between £50 million and £60 million a year.
