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Logica job cuts predicted

Graeme Wearden ZDNet.co.uk

Published: 08 Nov 2001 13:02 GMT

City analysts are predicting that Logica -- one of the biggest success stories of the UK technology sector -- is poised to lay off up to 18 percent of staff sometime on Thursday.

Credit Suisse First Boston (CSFB) is understood to believe that 240 employees in Logica's mobile network division are facing the axe. FT Marketwatch reports that CSFB thinks some job cuts have already been made at Logica's operations in Ireland.

According to sources close to the company, Logica recently offered a voluntary redundancy package to employees -- but few staff showed much interest in the offer.

Logica has said that it will make a trading statement at 15:00 GMT today (Thursday). No further details were available.

The IT services company has experienced excellent growth in its mobile networks operations over the past few years -- thanks in part to its text messaging software. But there are signs that this boom may be slowing down. Andrew Given, Logica's finance director, warned earlier this year: "Our mobile networks business remains powerfully positioned globally and is by far the fastest growing business organically... however we are not seeing the stellar growth rates of the recent past."

In a research note issued to its clients, CSFB has warned that job cuts could affect Logica's long-term performance.

Updated: More details here

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