After being the target of a major cyber attack in March 2023, which led to the information of half a million pensioners in the UK’s private sector having their information leaked, aggressive cost-cutting measures, and other problems, the company has seen its share price fall by almost 20% after its annual financial report.
Capita is a data handling and IT firm, and one of the biggest outsourcing firms that handles payments user information, and related products. They provide services to the public as well as the UK government. It has contracts with the Army, the Navy, and the Department for Work and Pensions to name a few.
In 2023, the company saw a loss of £106 million before taxes, compared to a profit of £61 million in 2022. The ‘cyber incident’ reportedly cost the company approximately £25 million, which was ‘in-line with their expectations.’ The company also faced huge costs, nearly £55 million, because of its cost-reduction programmes, which include layoffs and property leases.
The CEO, Adolfo Hernadez, who recently joined the company in January, in his statement, has announced a further £100 million in cost-reduction over the period until June 2025. This would result in additional layoffs and a reduction in the amount of property the company holds.
Image credit: NSPA (National Suicide Prevention Alliance)
The former CEO of John Lewis, in his forward booking statements, also said, “The evolving digital landscape (automation and generative AI) poses both a challenge and an opportunity that we intend to take advantage of to deliver better, more efficient services to our clients.”
The company also added that they have improved security measures and provided subscriptions to affected members to ensure that any data flying around is controlled.
Capita has also come under scrutiny for other reasons dating back to 2018, when they took a contract with the NHS, and reportedly would send out incorrect payments, causing problems for a lot of doctors and nurses. In general, the idea of outsourcing critical tasks to corporations has not been appreciated by many and is seen as a way of avoiding responsibility by the government.
Share This Post On
0 comments
Leave a comment
You need to login to leave a comment. Log-in
