Plans by Capita to withdraw its O2 work at its call centre in Bury's Dumers Lane with the loss of 350 jobs have been condemned by the leader of Bury Council.

Cllr Mike Connolly said the proposals would have a devastating effect on the local economy and people’s livelihoods, and is demanding an urgent meeting with the firm’s bosses.

“In June 2013, both I and Ivan Lewis MP met Capita bosses in Westminster to seek urgent reassurances about issues that arose when O2 outsourced call centre jobs as part of a 10-year extension of its relationship with Capita,” he said. “One of those issues was the long-term future of the Bury site following a report in a national newspaper that Capita had drawn up documents to shut the Bury call centre and another in Glasgow within three years.

“We were given very clear assurances by Capita that these reports were inaccurate and that Capita were committed to safeguarding the future of the Bury workforce.

“I am now appalled to hear that we were clearly misled and that Capita are withdrawing from the O2 contract at the Bury site which will lead to the loss of around 350 jobs in October 2015.

“The loss of these jobs, the majority of which are filled by Bury residents, will have a devastating effect on the borough. It will worsen job prospects for our residents, take £4 million a year out of the local economy and undoubtedly lead to an increase in demand for hard-pressed public services.”

Cllr Connolly said he was at a loss to understand the rationale behind the closure.

“My understanding is that there has been little or no reduction in call volumes, and that Capita are already having to take contingency action, even with current staffing levels, to maintain service standards,” he said.

“To add insult to injury, it also appears that Capita is continuing to recruit at its site at Dearne Valley for the very roles that it is proposing to cut in Bury.”

Cllr Connolly has asked Capita for an urgent meeting at the Dumers Lane site to discuss the proposals, and added: “I speak for everyone in the borough when I say that we feel incredibly let down by Capita.”

A company spokesman said: “A core focus of the Capita O2 partnership is to transform the service and as such we are responding to O2 customers’ increasing need to interact over digital channels, rather than traditional customer service telephone channels. We are fully committed to doing everything we can to support our people as we transform the service and strive to be even better for O2 mobile customers.

“We are talking to employees in front and back office roles to offer redundancies through voluntary means. We will work closely with employees who decide to leave to accommodate their chosen leaving date and we will be offering a series of recruitment events, careers clinics and CV writing and interview classes.”