Capita cuts 900 jobs after sealing $299Mn pension deal
LONDON, UNITED KINGDOM — Outsourcing firm Capita plans to cut about 900 jobs globally despite recently securing a £239 million (US$299 million) contract to administer the Civil Service Pension Scheme (CSPS).
The firm said the cuts will target non-customer-facing roles to generate £60 million (US$75 million) in annual savings from early 2024. CEO Jon Lewis hinted at further reductions next year.
This follows Capita’s recovery from a major ransomware attack, contributing to recent revenue losses.
The 10-year pension contract starts in September 2025 to “modernize administration through digital innovation.” Specifically, it plans to integrate “generative AI to transform member experiences.”
However, Capita courts government business as hundreds of UK workers face unemployment. The firm employs 43,000 globally across cities like London and Manchester
Lewis framed the cuts as “identifying cost efficiencies” amid restructuring. But unions may contest the job losses carrying a £27 million (US$33 million) bill.
The deal continues Capita’s unstable government dealings. Yet it highlights Capita’s ongoing public sector relevance despite technology and workforce upheaval.
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