08 May 2008
IT services firm Logica plans to make annual procurement savings of £8 million to £10 million as part of a major restructuring programme.
The overhaul will cost the company £110 million, but it hopes to deliver overall savings of £80 million every year from 2010. Procurement will be tasked with cutting travel costs, introducing energy reduction policies and streamlining back-office suppliers.
A spokeswoman for the firm told SM it had "lots of suppliers, supplying the same thing", but would not confirm Logica planned to reduce vendor numbers.
The company is set to make around 1,300 redundancies as part of the programme, 500 of which could be in the UK. No details on possible buyer redundancies were available. Over the next two years it will recruit the services of 1,000 consultants to help win new contracts and grow strategic accounts.
Andy Green, the company's chief executive officer, said the cost-cutting effort would "revitalise" the firm.