Logica will cut 1,300 jobs as part of a restructuring announced by chief executive Andy Green this morning.
Green has been reviewing the firm since he took the top job in January. Some 500 posts will go in the UK. In Europe, where growth has been stronger, two per cent of jobs will go.
The services company will take a one-off £110m charge to pay for the restructuring. It will focus more on UK commercial companies - an area in which it has underperformed.
Logica will invest in better sales and marketing. It will make more use of offshore staff and will increase its consultants from 2,500 to 3,500. By the end of 2009, the firm expects to have 8,000 staff worldwide - compared to 3,450 it has today.
It will spend about £10m on a resource planning system so it can better manage projects across the world. It will create 1,500 jobs in India, mainly at its new centre in Chennai which opens in July.
The review also found overheads were too high. The company hopes to cut costs by between £15m and £20m this year, by £50m in 2009, and create annual savings of £80m from 2010.
The company's shares are down 3.2 per cent today.
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