MGM reveals 80 post-Budget redundancies

MGM’s chief executive said he hoped the redundancies would be managed where possible through natural turnover and voluntary redundancy, although there may be compulsory redundancies.

Simon Whitehead, chief finance officer, will leave to “focus on other interests outside the business”.

Simon Smith, currently corporate development director, will take Mr Whitehead’s role, subject to regulatory approval.

Article continues after advert

Mr Evans said: “It is clear the changes proposed in the recent Budget create many challenges for the industry.

“We have a great track record of responding to change, and it has become second nature to us over the last few years to adapt to opportunities that arise.

“Although I am personally deeply saddened by any redundancy, I have a responsibility to lead the business into the best possible shape, ready for the opportunities created by the current market turmoil.”

The firm, which bought equity release provider Stonehaven in January this year, also revealed plans to develop “a radical proposition for the retirement income market”, including blended retirement solutions, revising the investment proposition and making product changes to the investment-linked flexible income annuity by next year.

Industry view

Brian Magnus, partner at MGM’s investor TDR Capital, said: “With the benefit of the significant capital investment we have made, coupled with MGM’s expertise in developing innovative products like the flexible income annuity, we are well placed.”