21st Nov 2023 11:45
(Alliance News) - Capita PLC on Tuesday said it plans to cut 900 jobs to save costs, as it begins to conduct employee consultation programmes.
Shares in Capita were 7.4% higher at 20.62 pence each in London on Tuesday morning.
The London-based consulting, transformation and digital services business said expects to deliver cost savings of around GBP60 million on an annualised basis from the first quarter of next year, with GBP27 million in exceptional costs related to the job cuts to be recognised this year.
The cuts will mostly be "indirect support function and overhead roles", Capita said.
Looking ahead, Capita continues to trade in line with its expectations, delivering positive operational and financial performance. It added that it has won contracts with a total contract value of GBP2.85 billion.
This comes after Capita reported in August an interim pretax loss of GBP67.9 million for the first half of 2023, from a GBP100,000 profit the previous year due to business exits, non-core portfolio goodwill impairment, and costs associated with a cyber attack in March which disrupted some clients' services.
By Sabrina Penty, Alliance News reporter
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