Logica-CMG to cut 300 jobs in Dublin and Cork

Over 300 jobs are to be lost in Cork and Dublin through lay-offs with British-owned owned phone software company Logica-CMG mobile…

Over 300 jobs are to be lost in Cork and Dublin through lay-offs with British-owned owned phone software company Logica-CMG mobile.

A total of 220 jobs will go at the group's base at Dublin's International Financial Services Centre; 95 more will be lost in Cork, where a software development centre is to be closed.

Logica and CMG merged late last year and made it clear then there would be 1,400 redundancies throughout their European operations.

The merger, which was worth €791 million, created Europe's third-largest computer services company in terms of revenue, with 24,000 employed worldwide

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Logica owned 60 per cent of the new company after the all-share deal and its chief executive, Mr Martin Read, took that role in the new firm.

Following the announcement, the Labour Party accused the Government of doing 'little or nothing' to stimulate job creation and warned that the live register was heading towards the 200,000 mark.

"The loss of a further 300 jobs in the Logica-CMG group brings to almost 1,000 the number of jobs lost in the high tech sector over the past two weeks, " Mr Brendan Howlin, Labour party spokesman for Enterprise, Trade and Employment said.

"It is disastrous news for the workers involved and a clear indication of a growing jobs crisis, that the government appears to be ignoring."

"These losses come on top of coming on top of last month's live register figures showing an increase of 7,500 on the previous month and new figures from the Department of Enterprise, Trade and Employment, showing that notified redundancies last year had double since the year 2000. What had been a steady stream of job losses over recent months, now threatens to become a torrent."

The Tanaiste, Ms Mary Harney, however said the job losses were the result of a downturn in telecommunications markets worldwide.

"I understand that the company is announcing lay-offs across its operations worldwide and while that is of little consolation, it does underline the fact job losses in the industry are not a phenomenon that is unique to Ireland," she said.

" . . .the challenge that is facing us now is to ensure that we continue to get the fundamentals in our economy right so that we are better placed than others to benefit from the turnaround when it comes."