Business

Outsourcer Capita warn up to 900 jobs at risk of redundancy in cost-cutting drive

Capita has warned up to 900 jobs are at risk of redundancy as part of a cost-cutting drive.
Capita has warned up to 900 jobs are at risk of redundancy as part of a cost-cutting drive.

THE company responsible for managing IT services in 1,100 of the north’s schools has said it might slash up to 900 jobs in a bid to save costs.

Outsourcing giant Capita is to shortly launch consultations as it looks to save around £60 million per year from the early part of 2024.

The London-headquartered business, which operates from sites in Newtownabbey and Belfast's Clarendon Dock, said the cuts would mainly hit "indirect support function and overhead roles", putting around 900 roles at risk.

A spokesperson it was “too early in the consultation” to say how many jobs are at risk of redundancy in Northern Ireland, but said the roles are not all UK based, adding: “There is no impact to contracts or client services.”

Capita was last year awarded a two-year extension to its contract with the Education Authority (EA), worth £50.6 million, to continue delivering managed IT services for all Northern Ireland schools.

It's also contracted to carry out health assessments for people applying for personal independence payment (PIP).

The outsourcing group has already reduced its Northern Ireland headcount over the past year, in part by offloading three HR businesses in a £21m deal.

It included Capita HR Solutions , which at the time of the sale in May 2023, employed between 100 and 200 people in Belfast city centre.

Announcing the cost cutting plan on Tuesday, Capita said: "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.

"The organisational changes proposed primarily impact indirect support function and overhead roles which mean that approximately 900 roles are at risk of redundancy."