A vivid example of how inadequate protection can seriously damage the company's reputation.
Major outsourcing giant Capita reported a net loss of 106.6 million pounds ($135.6 million) for 2023, with much of the loss coming from a costly cyberattack in April.
In May, the company said that the elimination of the consequences of the incident will cost it about $25 million. As a result, the total costs associated with hacking amounted to $32.2 million. The total loss of $135.6 million from the company immediately led to a 20% decline in the company's market capitalization, which was a major disappointment for shareholders.
The impact of the attack on business was significant, reducing the customer loyalty index from +25 to +16 due to the impact on pension management activities. The cyberattack was a major blow to operating profit, reducing cash flow from $125.2 million to $52.4 million, which was partly due to the cost of dealing with the consequences of the cyberattack.
Other factors that affected the financial results included exiting certain business lines, impairment of business reputation, and expenses related to the company's cost-cutting program.
In response, the new CEO of Capitaadolfo Hernandez announced an additional cost reduction for 2024, which aims to save an additional $127.2 million by mid-2025. Also in November 2023, Capita announced plans to cut about 900 jobs, not excluding the possibility of further layoffs.
Future plans include focusing on precision execution, co-developing solutions with customers, accelerating the use of technology, and optimizing technology partnerships to improve operational and financial efficiency.
Despite the incident, Capita continues to monitor the darknet and found no new evidence that the stolen data is circulating there. The company continues to work with the British ICO regulator (Information Commissioner's Office), from which it continues to receive requests for providing various information.
Major outsourcing giant Capita reported a net loss of 106.6 million pounds ($135.6 million) for 2023, with much of the loss coming from a costly cyberattack in April.
In May, the company said that the elimination of the consequences of the incident will cost it about $25 million. As a result, the total costs associated with hacking amounted to $32.2 million. The total loss of $135.6 million from the company immediately led to a 20% decline in the company's market capitalization, which was a major disappointment for shareholders.
The impact of the attack on business was significant, reducing the customer loyalty index from +25 to +16 due to the impact on pension management activities. The cyberattack was a major blow to operating profit, reducing cash flow from $125.2 million to $52.4 million, which was partly due to the cost of dealing with the consequences of the cyberattack.
Other factors that affected the financial results included exiting certain business lines, impairment of business reputation, and expenses related to the company's cost-cutting program.
In response, the new CEO of Capitaadolfo Hernandez announced an additional cost reduction for 2024, which aims to save an additional $127.2 million by mid-2025. Also in November 2023, Capita announced plans to cut about 900 jobs, not excluding the possibility of further layoffs.
Future plans include focusing on precision execution, co-developing solutions with customers, accelerating the use of technology, and optimizing technology partnerships to improve operational and financial efficiency.
Despite the incident, Capita continues to monitor the darknet and found no new evidence that the stolen data is circulating there. The company continues to work with the British ICO regulator (Information Commissioner's Office), from which it continues to receive requests for providing various information.
