Jobs axe falls at Logica as trading conditions falter

technology firm Logica was the biggest faller on the FTSE all-share index yesterday after warning that trading conditions had worsened in its key European markets, sparking more than 1,000 jobs cuts.

The company – which employs about 41,000 staff worldwide, including some 5,000 in the UK – will axe about 450 roles in Britain and Sweden as it moves work to cheaper locations outside Europe.

A further 200 consulting and systems integration posts will be lost in Sweden and between 450 and 550 jobs will go in Belgium and the Netherlands.

Logica expects its business in the Benelux countries to return to profit next year following the restructuring.

Chief executive Andy Green said: “We see clients taking decisions to pull in their horns and waiting to see what is happening with the euro crisis and the global economy.

“It is fundamentally important that we get confidence in the future of the euro and we get businesses prepared and ready to start making investments.

“Companies have got strong balance sheets generally but they are sitting on their hands waiting to see whether the politicians can see a way through and that’s the key issue.”

In Scotland, Logica has about 350 staff in offices in Aberdeen and Edinburgh and carries out work in the financial services, oil and gas and transport sectors.

Clients include the Crown Office & Procurator Fiscal Service, Scottish Water and Tesco Bank.

In September, the firm took on 70 staff north of the Border to cope with increased work. Recruits included former Standard Life chief technology officer Russell Irwin.

Logica closed down 16 per cent or 11.95p at 62.1p.