LogicaCMG merger on track

Computer services company LogicaCMG, which came about in December through the merger of UK company Logica and Anglo-Dutch company Computer Management Group, has said that its merger is going to plan.

It confirmed that it expected to have annualised cost savings of €60m from the merger.

As part of its cost cutting the merged group is shedding around 1,400 jobs (about 6% of its workforce) and recently announced that 350 jobs were to go in Ireland.

The group said trading conditions remain difficult for its IT services division, in which it expects to report revenues for the second half of 2002 to be down 7% compared to the first half.