CMG Axes 470 Jobs and Warns of Sharp Downturn
Vaughan-Adams, Liz, The Independent (London, England)
THE ANGLO-DUTCH IT services business CMG shocked the market yesterday by warning of a sudden downturn in its UK business, forcing it to axe 470 jobs and sending its shares down 21 per cent.
Separately, the German software maker SAP also fell prey to the harsher trading conditions, issuing disappointing third-quarter figures while warning that 2001 revenues were now expected to grow by 15 per cent rather than 20 per cent.
The double dose of bad news sent shares in Logica, a rival IT services firm, down 8 per cent, as the markets fretted it would also be affected. Last month, it laid out plans to cut 5 per cent of its 5,000-strong workforce, equating to 250 job losses.
CMG said yesterday that the bulk of its job losses, some 3 per cent of its 13,800 strong workforce, would fall in the UK. Around 350 jobs will be lost from its services division and a further 117 from its mobile telecom products business, Wireless Data Solutions, in research and development. Almost 200 jobs will go from its offices in London and the South-east, around 140 from its bases in the Midlands, 50 in the North, 40 in Ireland and 30 in the South- west. Another 10 positions will be lost from its European offices. CMG is taking a pounds 6.5m charge to cover the move, which it expects will save it around pounds 20m …
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Publication information: Article title: CMG Axes 470 Jobs and Warns of Sharp Downturn. Contributors: Vaughan-Adams, Liz - Author. Newspaper title: The Independent (London, England). Publication date: October 19, 2001. Page number: 21. © 2009 The Independent - London. Provided by ProQuest LLC. All Rights Reserved.
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