Job cuts follows strategic review triggered by loss of large clients

Up to 27 jobs will be lost at Capita’s legal expenses division after a restructure of the business.

The company confirmed this week that the jobs would be axed after a strategic review triggered by the loss of Capita Assistance’s two largest clients last year.

A Capita spokeswoman said: “This [loss] had implications both for the volume of legal advice calls and the number of claims handled through the business. These events now leave the business with no choice but to better align the staff and the associated operational costs to the current and anticipated volume of work.”

She added: “While thiswill mean the loss of up to 27 jobs, there are already four new positions available under the new structure and every effort will be made to redeploy the affected staff in other Capita businesses.”

Last year, Capita said it would not withdraw from the legal expenses market after talks to sell the business to Towergate were reported to have fallen apart.

It is understood that Capita had explored putting the business into run-off

and had approached a company, thought to be DAS, to handle it.

The Capita spokeswoman said: “A strategic review of the business was undertaken in 2007 with a number of options being explored.”

She said no part of the business had been put into run-off.