Capita to axe 400 IT jobs

City A.M. Reporter
Outsourcing firm Capita (CPI.L) said on Friday that 400 jobs in its IT division were under threat, with some being cut and others moving to India as part of a cost cutting drive.

"On 30 March 2012, we commenced a series of consultation exercises involving our employees and their representatives, some focused on moving elements of our work activity to our existing IT services operation in India, and others focused on achieving headcount efficiencies on a function or location basis in the UK," a Capita statement read.

"At this stage we believe this may lead to approximately 400 redundancies," it added.

Capita, which runs contact centres and customer services for clients such as BBC TV licensing, The Pension Services and the Criminal Records Bureau, employs around 45,000 staff in total.

Workers union Unite said in a statement: "Our members will be angry and concerned at the prospect of losing their jobs in the current economic climate. Capita is a highly profitable company and to treat loyal and highly skilled workers in this way is deplorable."