Logica to cut 1,200 workers across Europe

IT services vendor Logica has announced plans to shed around 1,200 employees from its operations in Belgium, the Netherlands, Sweden and the UK.

The company said that 450 cuts will occur at offices in the UK and Sweden, and reports suggest that as many as 300 UK positions will be terminated.

The cuts are focused on streamlining the company's structure, and reflect the increased use of automation and offshoring, according to Logica chief executive Andy Green.

"We deeply regret the impact job losses will have on the people affected in many of our businesses," he said.

"But we are confident that it is best for our clients, people and shareholders that we face squarely into the difficult economic conditions ahead."

Logica is looking to reorganise its business and accelerate a restructure scheduled to take place over the next two years. The firm currently projects 2011 annual revenues to increase by roughly three per cent, with profits in the range of £240m to £250m.

Logica expects to incur a charge of roughly £80m from the restructuring and an additional £13m in property costs.