Prudential cuts staff in defined contribution arm

Prudential cuts staff in defined contribution arm

Prudential is halving the support staff in its corporate defined contribution (DC) arm as part of a company-wide £250m restructure.

The insurer revealed on Friday (11 May) that it will cut its corporate pension sales staff from 46 to 19 under plans to move to online and telephone-based services.

The provider is in the process of modernising its business and said it hopes staff can be redeployed to other areas within the company.

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But Prudential stressed the move did not mean it was turning its back on the corporate pensions market.

A spokesperson said: "While we haven't actively sought to secure new client mandates since 2010, we have worked to develop existing schemes since then with a particular focus on growth in public sector additional voluntary contribution (AVCs). 

"We are very much committed to this market and maintaining our leading presence in it, with a focus on providing a better experience for these existing clients. The changes we are making will allow us to concentrate our resources on areas where customer demand is much stronger."

Prudential had already cut ties with its former business processing partner Capita in the early parts of this year, forming a new partnership with Tata Consultancy Services (TCS) in a bid to streamline its pension administration.

The move also comes months after Prudential revealed it was splitting its Asian and European businesses, spinning off M&G Prudential to be listed separately on the London Stock Exchange.

The business also announced a £12bn sale of annuities to derisking expert Rothesay Life, covering 400,000 policies.