Serco axes 500 jobs in shake-up
Friday 27 January 2012
Prisons to defence giant Serco
is to chop 500 UK jobs as part of a shake-up in the way it provides
back-office services to public and private sector organisations
The outsourcing group, which delivers back-office support for a range of industries, including banking, insurance, travel and healthcare, is merging its business processing operations into one global division, following a series of acquisitions.
The move, combined with an overhaul of its UK management structure, will lead to 500 job losses in the UK, most of which will fall at the company's office in Hook, near Basingstoke.
Elsewhere, Serco unveiled a new £55 million contract with the British Army to provide training and support to military personnel prior to deployment on operations around the world.
Serco, which employs 100,000 staff worldwide, including 35,000 in the UK, has previously warned that its divisions in the UK and US were facing "challenging conditions" in the face of central and local government cutbacks.
Almost half of sales already come from outside the UK.
The company, which runs four prisons in the UK and London's Barclays Cycle Hire scheme, reported a 10% increase in pre-tax profits to £111.8 million in the six months to June 30.
The company decided to merge its back-office services after a number of acquisitions, including The Listening Company in the UK, Intelenet in India and Excelior in Australia.
Its latest contract with the Ministry of Defence to provide training to the British Army will start in April.
The Contemporary Operating Environment Force will provide training until December 2014 and will involve training soldiers in essential language, culture and operational environment skills, and will create realistic training conditions to prepare forces for deployment in Afghanistan and elsewhere.
Serco chief executive Christopher Hyman said: "This contract builds on our proven track record in helping the Armed Forces in the UK, US and Australia, and recognises our high-quality, efficient and innovative approach in training services."
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 3 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 4 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 5 AirAsia flight QZ8501 missing: Search for plane carrying 162 passengers from Indonesia to Singapore suspended overnight
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
AirAsia flight QZ8501 missing: Search for plane carrying 162 passengers from Indonesia to Singapore suspended overnight
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Millions of Britons struggling to feed themselves and facing malnourishment
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...