Capita has put 350 jobs at risk after confirming plans to close its self invested pensions administration business in response to increasing competition and regulatory costs.
In an interim management statement published today, the firm reveals it will close its Salisbury-based Capita SIP Services business over the next 12 months.
A Capita spokesman says the business is “sub scale and therefore unviable”. He says 350 employees will be affected by the decision and the firm will begin a formal consultation process early next year.
The spokesman says: “We informed shareholders at our half year results that our self invested pensions administration business operates in an increasingly competitive and highly regulated market, is sub scale and therefore unviable.
“Following a detailed review, we are taking steps to close this operation, a process that we expect to take 12 months.
“In the meantime, our focus is on working with our corporate partners on behalf of their customers to determine their preferred strategy for the future of their SIP business.”
It remains unclear how members of the schemes Capita administers will be affected by the move.