62 jobs under threat at Colchester office.

Capita is set to lay off 62 staff as its struggles in the deteriorating economic conditions.

The insurer has put up 62 employees at risk of redundancy at its Assistance business, which includes legal expenses, in Colchester. Redundancies will be confirmed by the end of January.

Capita is also looking at selling off business and putting contracts into run-off.

A spokeswoman said: “I can confirm that, as a result of an ongoing review and the current economic climate we have had to put up to 62 roles in our Assistance business, based in Colchester, at risk of redundancy. We will now be entering into a consultation process with affected staff.

“At the same time we are looking at a number of possible options for the business, including a managed run-off of the contracts and/or a transfer of all or part of the business to external third parties. It is possible TUPE may apply in certain instances.”