Insurer Legal & General set to cut about 1000 jobs

Life insurance and pensions firm Legal & General is set to axe about 1000 jobs.

Bosses say the move comes amid a need to make the company “a leaner organisation”.

It is understood the cuts will affect around a tenth of its total workforce, with changes slated to be made by the middle of next year.

The financial services operator says it will offer voluntary redundancy to UK workers first, with its asset management division set to be unaffected.

The proposed cuts come amid efforts to simplify the organisation’s structure, with the group already being trimmed from four businesses into three divisions.

It has additionally sold off assets including its Cala Homes housebuilding operation.

In an email to staff, boss Antonio Simoes said: “Over the last decade, different structures, processes and ways of working have developed, making us more complex than we need to be.

“To deliver our strategy successfully, we now need to make sure the way we work reflects the business we are becoming.”

The company previously cut roles in its asset management division after being impacted by an earlier part of the simplification programme.

A spokesperson said: “These changes represent the next stage of the business’ transformation, ensuring our organisation and ways of working reflect the business we are now building and the rapidly changing environment in which we operate.

“They will also help us focus our resources and investment on the areas where we see the strongest opportunities for long-term growth.

“We recognise and take seriously the impact on colleagues and are committed to supporting our people throughout the process and consulting with our unions.”

The firm last month revealed stronger-than-expected first half results as it reported a 37 per cent increase in fee-related earnings from its asset management division.

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.