As part of a cost-saving initiative Capita, the UK-based outsourcing firm, could cut up to 900 roles.

The group launched employee consultation programmes which are expected to deliver cost savings of £60 million on an annualised basis from Q1 2024. The organisational changes proposed primarily impact indirect support function and overhead roles which mean that approximately 900 roles are at risk of redundancy.

Capita said it expects to recognise exceptional costs in respect of this programme in the order of £27 million in the income statement for the year ending 31 December 2023 with the cash impact expected to fall into Q1 2024.

The group continues to trade in line with its expectations, delivering positive operational and financial performance and has won contracts with a total contract value (TCV) of £2.85 billion year to date (2022 full year TCV: £2.59 billion).

Jon Lewis, Chief Executive Officer, said, “We are, today, announcing the accelerated delivery of the efficiency savings announced in our half year results with a £20 million increase in overhead cost reduction to £60 million 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,” Lewis said.

According to the Guardian, the job cuts would affect mainly support function workers and roles such as admin, rather than customer-facing staff. The company has not ruled out further job cuts.

Earlier this year, the company confirmed that Adolfo Hernandez will be appointed as CEO and a director on 17 January 2024, at which time Jon Lewis will step down from the Board.

Capita suffered a cyber-attack in March this year. The group said the incident caused disruption to some services provided to individual clients, though it added that the majority of its client services remained in operation. Approximately 90 organisations reported breaches of personal data held by Capita.