Logica, a British computer services and consultancy firm that employs 550 people in Cork and Dublin, will shed up to 5 per cent of its Irish staff to cut costs.

The company confirmed yesterday it had appointed worker representatives to begin a consultation process with management to discuss redundancies.

A spokesman said Logica was taking steps to reduce staff in Britain, the Republic and the Netherlands to meet financial targets.

"Staff numbers have grown 47 per cent over the last year and the attrition rate has fallen," he added.

It is still unclear how many people will lose their jobs but it is believed some 250 people, or 5 per cent of Logica's workforce, will be made redundant.

The company entered the Irish telecoms market in 1997 when it acquired Aldiscon, the Irish mobile telecoms software company.

It has since established a production centre close to Cork airport and a major facility in Dublin.