Capita PLC (LSE:CPI) plans to axe around 900 jobs as part of a cost-cutting drive.
The outsourcing specialist said the cuts are expected to deliver savings of £60 million annually from the first quarter of 2024.
The job cuts will primarily impact indirect support function and overhead roles and lead to exceptional costs of £27 million for the financial year ending December, with the cash impact expected to fall into the first quarter of 2024.
The £60 million figure is ahead of the firm's stated aim in its half-year results to double its operating margin to 6% based on cost savings of £40 million per annum by the end of 2024.
Capita said it continues to trade in line with its expectations, delivering positive operational and financial performance and has won contracts with a total value of £2.85 billion in the year to date.
Jon Lewis, chief executive officer, said: “We continue to identify further areas of cost efficiency and will pursue these during 2024.”