Aegon announces more job losses
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Aegon UK has announced an additional 213 job cuts across its marketing, IT and personal assistant support staff.
Aegon today advised staff of new structures being brought in as part of its drive to reduce its operating costs by 25 per cent by the end of 2011.
The provider is also in negotiations to outsource work involved in managing inbound and outbound documents within the business, which, once completed, will mean 106 staff are transferred to the new supplier company Océ.
Aegon says it is seeking to minimise the number of compulsory redundancies where possible.
Aegon announced its plans to restructure and refocus its UK business in June. As well as cutting costs, the company aims to refocus the business on two areas, at retirement and workplace savings.
Aegon says it met £37m of its £80m cost saving target by the end of March through a combination of payroll and non-payroll savings.
A further update on the impact of the cost savings from today’s announcements will be given in the next few months.
Chief executive Adrian Grace (pictured) says: “This is a challenging time for our people and our business but achieving a lower cost base is essential to ensure Aegon remains a strong and successful business in the years ahead.
“The changes we have announced today mean we remain on track to meet our cost saving targets by the end of this year.”
Aegis the Union general secretary Brian Linn says: “This is a sad and difficult time for our members, with many of them facing an uncertain future. To be clear, Aegis will resist any attempt to impose compulsory redundancies. We recognise the current challenging business environment but are hopeful that job losses will come through volunteers.
“We have insisted voluntary redundancy registers are opened and redeployment opportunities are offered to help mitigate compulsory redundancies.”
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Readers' comments (7)
Anonymous | 19 May 2011 2:38 pm
I feel for the employees who have worked hard for this company, but its the business not operating within its means and trying to buy business that has cost them. If your an adviser why why would you ever place any more business with such a firm especially corporate pensions. Good luck to all those who are unfortunate to lose their jobs. Good people are always needed.
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Martin | 19 May 2011 3:21 pm
I used to place quite a bit of business with them but lately I've had to "turn the tap off" as their post sale support has been terrible. This news will only make things worse.
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Julian Stevens | 19 May 2011 5:25 pm
It was a stupid mistake for Scot. Eq. as was ever to have got involved with stakeholder pensions and yes, their after-sales service (IME) has been rubbish for many years now. Nobody wants to take responsibility for sorting anything out, like most of the other trad. life offices.
I haven't recommended them for anything but a bit of protection business now and again since the early 90's.
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Bill | 19 May 2011 6:26 pm
Boycot the company ... sales support is down then why keep giving them business so the top executives can keep putting money into their pockets. Better to do business with a company that appreciates their employees who work hard to make a company prosper.
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Robert | 20 May 2011 7:08 pm
It's a shame that jobs have to be cut but it's just a sign of the times and I don't think a refletion on the firm itself.
I have always found the staff at Aegon's protection office exceptional and have had no problems whatsoever.
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Anonymous | 23 May 2011 8:57 am
As a former sales support Employee (now IFA) of Scottish Equitable, I feel for my ex colleagues some of whom have clocked up 20 years plus service.
One thing I would say in concurrence with the previous comments made, AEGON are pretty much no more than a slick saleforce with no substance in the back office. In a post RDR world that must change if the company is to survive. Service is key and AEGON fail on all counts.
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Anonymous | 16 Jun 2011 9:43 pm
I know many people who work for the company, and the same story I am told is that the problems are the lack of depth in the management. Many people were promoted because their face fit, not if they could actually do the job. What a shame for the people who make the best of a bad situation.
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