Capita, London-based international business process outsourcing and professional services company, is planning to lay off about 200 employees, as per media reports.
The Company, which provides outsourced services to the UK government, has a 61,000-strong workforce. Of these, those part of its central support team in London will be most affected by this round of layoffs. The pandemic has forced it to consider cost-cutting measures in a bid to preserve cash and stabilise its finances.
While those in client-facing roles are not at risk for the time being, they may be laid off in the future as Capita struggles to stay afloat and comply with the terms put forward by lenders.
However, the Company — which had warned investors of the adverse effects of the pandemic on business — maintains that the financial situation is not very bad. It is currently involved in about 100 UK government COVID-response projects, and is also lending support to the NHS in screening employees who are returning to work on the front lines.
The economy of the UK is the hardest to be impacted by the outbreak. If there is a second wave of the virus later this year, the economy may fall by even 14 per cent. Experts have predicted that the unemployment rate is likely to be high in the near future, despite job-protection measures.
Capita’s main revenue last year reportedly came from army recruitments, BBC licence fees and from enforcing London’s congestion zone.