Logica 'to announce job cuts'

Troubled IT services group Logica is to announce job cuts when new chief executive Andy Green outlines the outcome of a strategic review tomorrow (April 22nd).

Troubled IT services group Logica is to announce job cuts when new chief executive Andy Green outlines the outcome of a strategic review tomorrow (April 22nd).

It is thought the company's UK operations may be the hardest hit, with jobs likely to be transferred to cheaper locations such as India.

Analysts are concerned that the review could take time and fear that investment and restructuring costs may result in a short-term drop in revenue.

Patrick Standaert, a Morgan Stanley analyst, said: "We are expecting the cost of transforming the business to be about £80 million, with around 1,000 staff to be replaced or changed."

Julian Yates, an Investec analyst, noted that people are looking to Mr Green to restore the company to it status as "a credible player".

"There is some hope he will be able to drive value out of the business and this is why the strategic update will be important," he said.