Capita cuts out a layer of management

By Tony Collins

Paul Kunert at The Register says Capita has cut out an “entire layer of management” six weeks after the company’s profit warning.

“Those caring souls at Capita have inevitably taken the knife to the business, cutting out an entire layer of management and slicing and dicing the divisional structure …” says The Register. 

Andy Parker, CEO,  said “reshaping and simplifying” the organisation and management structure would lead to “good financial performance in 2017 and beyond”.

Capita will give a trading update to the London Stock Exchange in December.

The company’s share price is well below half its level a year ago.


It’s difficult to see how Capita can reconcile the need to please shareholders, reduce its own business costs, find the money to resolve problem contracts such as the Primary Care Support Services deal to support GP – and at the same time provide innovations and transform services for local councils and the NHS.

Unless, perhaps, a few customers are supplying much of the profit. Those customers are less likely to be in the private sector.





One response to “Capita cuts out a layer of management

  1. Let’s hope that those that have been removed were genuinely superfluous and not just lacking in corporate self-protective strategies.
    On the other hand, I am sure the company will re-engage with useful personnel – as private consultants.
    Thanks, Tony.


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