L&G to cut 600 jobs in savings and protection business

Legal & General has placed around 600 jobs at risk following a merger of its savings and protection businesses earlier this year as part of a restructure following the completion of the firm’s acquisition of platform operator Cofunds.

The restructure, announced earlier this year, saw the savings, annuities and protection arms merged to form Legal & General Assurance Society. Within this sits a combined savings and protection business in which Cofunds is housed, which has some 5,000 staff.

When asked would the job cuts have an impact on the way the insurer dealt with intermediaries, a spokesman for Legal & General told FTAdviser the redundancies would remove duplication from the new business.

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He confirmed Legal & General was just starting the consultation process but added discussions have taken place with unions and that decisions would be made in 2014.

At the time the restructure was announced, Nigel Wilson, group chief executive of L&G, said: “The successful turnaround of the Savings business now enables us to re-organise our business in a way which best reflects customer needs and the increasingly digital distribution environment of [Retail Distribution Review], auto-enrolment and platforms.

“Customers want straightforward access to our products and services and the new structure will enable us to deliver this and maximise the synergies between our businesses.”