More uncertainty for LogicaCMG workers


5 Mar 2003

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UK software and IT services provider LogicaCMG says it cannot confirm that more Irish jobs will not be lost following its announcement today that a further 2,200 of its workforce would be laid off worldwide.

However, a spokesman for the company told siliconrepublic.com that the cuts would be focused in continental Europe and said it did not expect to shed any more here.

The company, which was formed last December when Logica plc bought competitors CMG, laid off 300 people in Ireland in January across its Dublin and Cork operations.

Dublin lost nearly half of its workforce – 210 out of 450 – while Cork lost 90 jobs. Some 150 people remain working across the two operations, but the lion’s share are in Dublin.

Chief executive officer Martin Read said: “It is the worst period ever in the IT service industry.”

Krijn Moens, an asset manager at Eureffect BV in Amsterdam, which owns LogicaCMG shares, said: “There is no sign of recovery and it will be a difficult market this year.”

This latest tranche of jobs cuts will be made before the end of this year.

Shares in the company dropped by up to 7pc following the news.

Currently shares are trading at 1.08p sterling (€1.57), down 0.02775p sterling since trading opened.

The company hopes the measure will help to save £80m sterling annually.

By Suzanne Byrne