Capita to cut 900 jobs as part of cost-cutting – Labor newspaper

The outsourcing company is shedding nearly two percent of its workforce to cut staffing costs. The restructuring aims to double profit margins in the medium term.

London. Capita, a British outsourcing company with operations in Great Britain, Europe, India and South Africa, employs around 50,000 people. The layoffs represent nearly two percent of the workforce. Capita announced on Tuesday that it will cut around 900 jobs globally as part of its cost-cutting measures, which will primarily affect indirect support and overhead operations.

The company also announced that business growth was in line with its expectations. The layoffs are part of a goal to cut costs and double profit margins over the medium term.

“We will continue to identify additional areas of cost effectiveness and pursue them throughout 2024,” CEO John Lewis said in a statement. He too will retire at the end of the year.

The provider of public and private sector services has had a turbulent year following a costly cyber incident in March. The restructuring is expected to be £60m annually from the first quarter of 2024. The group previously had a cost saving target of £40m.

Source: Reuters