Computer services groups Logica and CMG are planning to cut almost 1,500 jobs under merger plans.

The groups said they had agreed terms of a merger to create LogicaCMG, which would be 60 per cent owned by Logica shareholders and 40 per cent by CMG.

A spokesman said the group was expecting to make cuts of about six per cent in the combined worldwide workforce of 24,000. About 8,000 staff are employed in the UK.

The spokesman could not say how many job cuts would be in the UK.

In a statement, the groups said: "The overall integration strategy has been formulated between the two management teams and detailed planning is under way in preparation for rapid implementation following completion of the merger.

"As part of this process, appropriate consultations will be made with staff and employee representative bodies in the relevant jurisdictions."

The cuts are part of plans to make yearly cost savings of about £60 million.

The pair were both once members of the prestigious FTSE 100 Index but have battled against tough conditions and seen their shares slump after the tech bubble burst.

Last month they revealed they were in early discussions regarding the "commercial merits of a merger".

They said the merger would create a firm with a leading position in IT services in European markets and would have a broad coverage of blue-chip customers and an improved position with central government customers.

Martin Read, chief executive of Logica, said: "Bringing Logica and CMG together will create a powerhouse in IT services and wireless telecoms."