Logica to axe up to 300 UK jobs

IT services provider Logica is to axe up to 300 of its UK staff in preparation for difficult financial conditions as a result of the Eurozone debt crisis.

In addition to the 300 jobs to go in the UK, the IT services firm will cut an additional 1,000 in Sweden, Belgium and the Netherlands.

In a statement, the firm said that it would bring forward its restructuring plan that would have been spread over two years, to ensure that the business can thrive in a challenging economic outlook.

"Many of our clients are delaying short-term expenditure and reducing discretionary investments to weather an uncertain economic future," it said.

It went on to say that the last quarter had seen a widening of the "pockets of weakness" first seen in September.

The company said that after contact with clients, it would predict a one to two per cent decline in GDP in its European markets in 2012; however, it still expects a profit of £240m to £250m in its full-year operating profits.

The staff restructure will cost the firm £80m and the property restructure will cost £13m. The firm currently has 15 offices in the UK, with its head office located in Reading.

CEO of Logica Andy Green believes that although the job losses are regrettable, it will benefit the firm in the long term.

"We deeply regret the impact job losses will have on the people affected in many of our businesses. But we are confident that it is best for our clients, people and shareholders," he said.

"This decisive action will result in sustainable margin improvement in 2012, with the benefits starting to flow through in the second half. It will also ensure that a strong Logica can concentrate on helping clients to use technology to cut costs and serve their customers better," Green said.