View more on these topics

Aegon announces more job losses

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.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. 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.

  2. 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.

  3. Julian Stevens 19th May 2011 at 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.

  4. 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.

  5. Pull the plug now and be done with it

  6. Simon Mansell 19th May 2011 at 6:50 pm

    Of course the initial £1.7billion FSA RDR costs will not have helped!

    I wonder what those redundant staff think when they here that The number of Financial Services Authority (FSA) staff earning more than £100,000 has almost trebled in the past four years,not the mention the £20m bonus they awarded themsleves at a time when the FSA has failed every test put before it. Clearly regulations is the place to apply for a new job!

  7. 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.

  8. 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.

  9. 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.

  10. I agree with the last post. People were promoted within Aegon when their face fitted and were nodding dogs rather than someone with the knowledge and confidence to challenge the ‘norm’. A number of issues have arisen over the last couple of years which have lead to fines from the FSA. It’s my understanding that lower level staff were highlighting that things were being miscalculated for years but were told to shut up and carry on. If some people had only listened to newbies coming on board who had good experience in other financial companies, this company would be in a good position but instead the newbies were eventually hounded out because they caused problems i.e. they asked simple questions as to why things were being done the way they were done.

    Fingers crossed the new Chief Executive can turn it around for the better and improve their customer service for those who have bought policies with them.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com