Capita to cut 200 jobs - report
By Sean Farrell
Date: Monday 15 Jun 2020
(Sharecast News) - Capita, a major provider of pandemic response services to the UK government, plans to cut at least 200 jobs as it tries to stay within conditions set by lenders, according to a report.
The FTSE 250 company has started consulting employees about redundancies at central support teams in London, the Guardian reported. Cuts will not affect employees working for clients but further reductions are possible, the paper said.
Capita shares fell 4.4% to 39.39p at 08:34 BST.
The company, which employs 61,000 people, is working on 100 projects for the UK government, its biggest customer, in its response to Covid-19, including recruiting and training people for the track and trace programme. The company said in March coronavirus would be a "net negative" for business as work for the government is more than offset by declines elsewhere.
Capita has cut costs to strengthen its financial position during the crisis, including furloughing workers and cutting board and senior managers' pay. Job cuts at Capita add to a wave of tens of thousands of redundancies proposed by companies such as British Airways, Rolls-Royce and Centrica.
"As a result of the ongoing Covid-19 crisis, we are taking further, decisive cost-cutting action to preserve cash and protect our financial position. This will regrettably result in the loss of a number of jobs within our head office," a Capita spokesman told the Guardian.
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