Aegon announces 116 more redundancies
As part of this further restructure, its affinity group advice service Aegon Direct will be closing, while new structures for its customer services, finance, legal and sales teams have been announced,
According to a spokesman for the company, staff were told today of these further developments in its programme to restructure its life and pensions business and reduce operating costs by 25 per cent by the end of 2011.
A statement from the Dutch-owned company, which also owns Origen and Positive Solutions, said Aegon UK will put in place new structures in the Customer Services and Finance areas as a result of investment in technology and streamlining of operations.
The Legal and Sales areas will also be streamlined to reflect the refocus of the business on its two growth markets of ‘At retirement’ and Workplace savings.
It said: "The moves will lead to a reduction of 116 roles in the life and pensions business. This includes a reduction of 17 roles in affinity group advice service Aegon Direct. Aegon has decided to close this business and wind it down by the end of the year."
Aegon Direct was launched in October 2009 to provide annuity advice to members of a limited number of affinity group partners.
The company believes the capital required to run this business unit can be better redeployed in other areas to provide a greater return for shareholders. Therefore Aegon Direct will wind down over the next few months, closing by 31 December 2011.
Aegon UK's chief executive, Adrian Grace said: "All of the decisions we've taken over the past 12 months have taken us closer to delivering our restructuring plans and positioning Aegon for success in its chosen markets. We will continue to look at all cost saving opportunities to meet our target by end 2011.
"These are challenging times but we are on track to deliver and ensure Aegon's future success."