Standard Life/Aberdeen: 800 jobs to go in merger

Standard Life/Aberdeen: 800 jobs to go in merger

Some 800 jobs could disappear as part of the proposed tie-up between Standard Life and Aberdeen, according to the two firms.

A prospectus outlining plans to create an entity called Standard Life Aberdeen said: "Standard Life and Aberdeen expect to achieve cost synergies where duplication exists and by taking advantage of opportunities to leverage the additional scale of the combined group.

"At this time it is estimated that the integration and restructuring will result in a phased reduction of approximately 800 roles from the total global headcount of the combined group as at December 31 2016 of approximately 9000 over the three-year integration period."

According to the prospectus, such "synergies" would in part come from natural turnover of staff, while steps would be taken to minimise the number of compulsory redundancies at the companies.

Other details to emerge included a proposal to dub the new entity's asset management arm Aberdeen Standard Life Investments, in a departure from the style applied to the main company.

The role of chief investment officer at the new entity will be taken by Rod Paris, who currently holds this position at Standard Life Investments (SLI).

Meanwhile Campbell Fleming, who joined Aberdeen from Columbia Threadneedle last year to bolster the former's distribution efforts, is staying on at the new firm, as head of distribution investments.

In a separate update, Standard Life said increased diversification at SLI had helped lead to net inflows across the wholesale and institutional channels of up to £1bn in the opening quarter of 2017, well above the £100m figure from a year before - but only once outflows from Gars had been excluded.

The absolute return offering, which has endured a bout of underperformance, suffered outflows of £2.8bn over the period, following on from £4.3bn in redemptions across 2016 as a whole.