Capgemini plans to axe up 600 jobs after the restructure of its IT outsourcing contract with HM Revenue & Customs last week.
Staff have been told of the cuts this week, which would equate to around a fifth of the Capgemini staff working on the Aspire IT contract at HMRC.
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Although a three year extension of the contract is expected to ultimately make more cash for Capgemini, a restructure of the work will mean less bodies are needed on the ground to manage the deal.
HMRC is expected to make savings of up £80m a year from the restructure. It is not commenting on the job losses.