Outsourcing firm LogicaCMG will shed 1,300 jobs, including 500 of its UK workforce, in an effort to cut administrative costs.
Logica said some of its 30 UK offices would close with many back-office functions, including HR and finance, likely to be affected.
The troubled firm said it plans to more than double its offshore staff from a 3,450 to 8,000 by the end of 2009, as part of a £110m plan to revive the business.
The firm said the restructuring would save between £15m and £20m this year, increasing to £50m in 2009 and £80m from 2010.
The group is headquartered in London, but has regional operations in locations including Reading, Staines, Leatherhead, Edinburgh and Glasgow.
Andy Green, chief executive of Logica, said: “We will be increasing our investment in growing the Logica business, funded by a cost-cutting programme that will reduce overheads. I am confident that this plan will allow us to outperform the market and revitalise Logica.”
In January, Jim McKenna, chief operating officer at LogicaCMG, and former HR director, announced his intention to resign later in the year.