Reg comments25

'You don't have to take Prozac to work at Capita - but it helps'

Staff morale withers under lingering job cuts threat

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Capita IT Services' morale-zapping redundancy programme is not running to schedule nor playing out smoothly, say company insiders.

Although 1,000 workers were put at risk of losing their jobs at the end of March, layoffs have yet to be comfirmed: programmers were given 90 days of notice but other employees were given 30 days.

The Farnborough office closed mid-May and its 200 call centre bods, finance staffers and technical consultants were transferred to the Reading and Basingstoke branches.

"Redundancies have still not been confirmed," said a source on condition of anonymity. "Prozac should be handed out as a legal requirement in that place. It is pretty depressing. Staff who don't want to go look likely to go and vice versa."

As well as axing staff, Capita's cost-cutting drive, referred to internally as the Unity programme, has frozen salaries for 2012 and shelved bonuses.

The integrator had called voluntary redundancies before Christmas, but only 60 heads were willing to leave of their own accord.

Chief exec Mark Quartermaine had previously admitted that slotting numerous acquisitions into the business had created inefficiencies, and it expects to hit the eject button for about 400 staff.

This will include programmers whose roles are being outsourced to the Capita operation in Pune, India.

A Capita spokeswoman told The Channel: "We are on track with our restructuring plans." ®

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