Advisers have raised concerns about a possible drop in Old Mutual’s service levels after the provider announced it is cutting 200 roles.
Last week, Old Mutual said the job cuts are the result of the creation of Old Mutual Wealth through the merger of Skandia UK, Skandia International and the Skandia European business outside of the Nordic region.
The firm originally announced plans to drop the Skandia brand in September. The cuts also see Skandia UK marketing director Nick Dixon and sales director Andy Davies leave the business.
Skandia International Middle East director Michelle Andrews has been appointed marketing director for UK, international and Europe, while Skandia UK sales director, corporate partners Steve Powell has been appointed sales director for the UK.
Old Mutual has entered into a 90-day consultation with affected staff.
Concept Financial Planning managing director Paul Richardson says: “It was inevitable that jobs would go but the number of roles that have been cut is a surprise. There is always a risk that service could suffer if a firm is getting rid of staff. Old Mutual will have to give more details about exactly where these roles are being cut.”
Quainton Hills Financial Planning director Gordon Bowden says: “The main reason firms merge parts of their business is to cut costs. When you do this there is always a risk that service levels will suffer as a result.”
Old Mutual Wealth chief executive Paul Feeney says: “We have a clear vision which is to grow into the leading provider of wealth management solutions.To achieve this we need the right structure and cost base to support a successful wealth management business, which means changing our current systems and processes.”