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UK – Capita announces plan to cut more than 2,000 jobs, issues second profit warning (The Times)

09 December 2016

Capita (CPI: LSE) the provider of business process outsourcing solutions and professional support services, has stated that it would cut more than 2,000 jobs and has issued a second profit warning in less than three months, reports The Times. Capita also announced that it would be selling its Asset Services division, along with shipping jobs to India and introducing robotics to its business. Chief executive Andy Parker said that the use of robots would help eliminate human error and make decisions faster. The sale of the Asset Services division is expected to bring in an operating profit of around £60 million in the current financial year. Capita issued its first profit warning in September this year, blaming poor results on a slowdown in contract earnings. Parker said that the business would “return to its core strengths” as a white-collar outsourcer, adding that he expected a similar trading performance in the full-year 2017 and would be “looking to grow again in 2018 and beyond”.