Logica is cutting jobs across Europe as it tries to sell its wares in the increasingly gloomy IT services market. The company warned that it expected profit to now be in the range of £240m to £250m for the year, while Logica's revenue growth prediction for 2011 has also shrunk. It now expects a climb in sales to be around the 3 …
It was 1300 jobs back then as well. Andy Green seems to like the number.
"The company warned that it expected profit to now be in the range of £240m to £250m for the year"
Only £240-250 million profit in the middle of a recession? I don't know how they sleep at night.
I know! Lets make a load of staff redundant! The best ones will leave if we offer VR, and the ones that are left will be so demoralised they will doubtless put extra effort in! That should maximise shareholder value nicely!
Buy any old tosh
"struggling to shift its order book from the public sector toward the commercial markets"
Public sector purchase because they have a budget to spend
Private sector purchase because they have a need and will choose the cheapest way of satisfying that need.
Hence you can charge extortionate amounts for public sector IT, but only a fraction of that for private companies.
This is why I prefer limited, NON PLC companies
They put the people first. Whilst no-one is ignoring you need to make a profit, a 2% drop doesn't sound that bad given these figures. Whilst times are hard, a profit in the hundreds of millions on the surface doesn't sound so bad! Am expecting some angry responses to this from higher up people, but hey. Unless there are 1300 timewasters you can find...
A paltry £240 million?
Perhaps if we axe the rest of our employees, we might make a more healthy profit next year!
£240 - 250 Million profit for a stock market valuation of around £1 billion. Bargin.
They need redundancies why?
Merry Christmas minions, now back to work!
Nice of them to announce it just before Christmas.
Maybe this is why no-one has mentioned the idea of a Christmas party here at Logica, or God forbid, whether the bonus scheme will pay out in April. The good news is that they've maintained the level of dividend payment despite everything, so at least the bankers are happy.
NIce to see where Andy Green's priorities lie!
A/C so I can keep my job, for now anyway.
One of the many reasons I left...
...and haven't looked back. I survived 3 mergers & the concomitant job culls, and endless years of pay freezes, deep discord at the grass roots level due to blind, permanently disconnected management, etc... and in the end went when the opportunity arose (not VR incidentally).
Logically it doesn't make sense because that restructuring cost is around the same as 18-24 months cost of employing those 1300 people. In which time a number of people could have left and not be replaced and the demand may have picked up.
Unfortunately the 'market' will view it well because it moves from an OPEX to a non-recurring cost so is excluded from valuations. It is just playing with numbers and it sucks.
Here they go again
-Treat the employees like dirt.
-Make sure the senior management are not affected (especially their share dividends).
-Realise AFTER the event which way the business is going.
Nothing changes there. I tell you it was a welcome relief when they lost the contract I was working on and I was TUPE'd to another company (where I even got a PAY RISE!!!!)
I would be more impressed with the company if some of the senior managers were given the boot.
Potential customers be warned - a happy workforce provides a better service!
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