Christmas has been cancelled for staff at Logica, despite the company proudly announcing a 60 per cent rise in profits at the start of September.

In an internal memo sent out today, the COO of Logica Mobile Networks Gerry McKenna lays out the company's extensive cost-cutting plans which includes the removal of all pay reviews, a ban on non-essential travel (and forget about business class) and worst of all, the cancellation of the company's Christmas party. This knock to staff morale comes on top of 250 job cuts at the end of September.

Other measures include: no international phone calls; phone cards to be used instead of hotel phones; no conferences, exhibitions marketing or advertising without direct approval of the chief exec; reduction in the number of translators and the elimination of freelance contractors.

"By implementing these measures with your help and support we will ensure a bright future for our company," writes Mr McKenna. "Your continued commitment to the achievement of our fiscal goals in these uncertain times is very much appreciated."

Logica has confirmed the memo is authentic, and says it is "evidence of the company's good housekeeping". A spokesman told us the cuts were in line with its commitment to provide value for its shareholder and investors. He would not rule out further job losses however saying that a three-month consultation period is underway, at the end of which the company will decide what it needs to do. ®