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Collective redundancyLatest NewsJob creation and lossesRedundancy

Capita announces 900 redundancies

by Ashleigh Webber 21 Nov 2023
by Ashleigh Webber 21 Nov 2023 T. Schneider / Shutterstock.com
T. Schneider / Shutterstock.com

Capita is to make around 900 redundancies as part of efforts to cut costs.

The outsourcing giant, which runs services for local councils and the NHS and administers pensions services for several large employers, said 900 roles, primarily in support functions, had been placed at risk of redundancy after an “extensive organisational review”.

The job cuts are expected to save the company £60m a year from Q1 2024, it said. It will soon begin consulting with the employees affected.

Capita employs 43,000 people across the UK, Europe, India and South Africa.

It is still recovering from a cyber-attack earlier this year which has cost it as much as £25m, pushing the company to a pre-tax loss of almost £68m for the first half of the year.

Employee data including names, addresses and national insurance numbers were among the data stolen.

CEO Jon Lewis said: “We are, today, announcing the accelerated delivery of the efficiency savings announced in our half year results with a £20m increase in overhead cost reduction to £60m on an annualised basis from Q1 2024.

“As part of the organisational review which underpins the programme we are announcing today, we continue to identify further areas of cost efficiency and will pursue these during 2024.”

Capita recently won a £239m, 10-year contract to manage the civil service pension scheme from September 2025.

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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