Aussie Logica staff safe from the axe

Service provider Logica will axe 1300 of its international employees over the coming year, citing an uncertain economic outlook among European countries.

However, Australian staff have been assured their jobs are safe with Logica confirming to CRN that local operations would not be affected by the global downsizing, which the company hopes will help better insulate it from the current economic storm.

“Across our wider business, we continue to seek opportunities to grow while remaining mindful of the economic outlook,” a spokesperson said. “With GDP forecasts slowing and clients spending less, accelerating restructuring in Europe ensures Logica is well positioned well for the future."

In a statement on its website, Logica said clients delaying short term expenditure and reducing investments had kicked off a trend of weak growth and a need to restructure its business.

“We are therefore accelerating the restructuring that we would otherwise have spread over the next two years. This will lead to charges in the current financial year of around £80 million ($A125 million) related to restructuring of jobs and £13 million relating to property. We expect these measures to impact in excess of 1,300 jobs.”

The Guardian reported the figure represents just over 3 percent of its global workforce, with 450 to 650 workers from the UK and Sweden affected, and 550 from Belgium and The Netherlands left to seek new employment in 2012. 

CEO Andy Green said in a statement he “deeply regretted” the impact job losses would have on those affected

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

The company expects the move to result in financial benefits of £25 to £35 million from the second half of 2012.

Logica specialises in the energy & utilities, public sector, and transport & logistics markets, having provided solutions for Hydro Tasmania, the Federal Government's CrimTrac agency, Melbourne Water and Yarra Trams. The company also has partnerships with the likes of IBM and Cisco.