Aegon UK has cut 116 jobs from its life and pensions business and will close its Aegon Direct arm.
The provider is to introduce new customer services and finance structures while its legal and sales areas will also be streamlined to reflect the refocus on at retirement and workplace savings.
The firm is aiming to reduce operating costs by 25 per cent by the end of the year. A total of 1,106 jobs have been cut since January 2010. It had met £58m of the annualised £80m cost saving target by the end of June 2011.
The moves will lead to a reduction of 116 roles in the life and pensions business, including 17 from Aegon direct.
Aegon Direct was launched in October 2009 to provide annuity advice to members of affinity group partners. The provider says it believes its resources could be better spent elsewhere and the venture will close by the end of the year.
The cuts include 673 jobs through restructuring of the business and 329 roles that have not been filled after staff have left the firm. 91 roles have been moved internally from Aegon UK to a different Aegon Netherlands business unit in 2010.
There has been further reduction through the closure of Aegon Benefit Solutions. In addition a further 170 roles are expected to transfer to European private equity group Cinven as a result of the sale of the Guardian closed life and pensions book in August.
Aegon UK chief executive Adrian Grace says: “All of the decisions we have taken over the last 12 months have taken us closer to delivering our restructuring plans and positioning Aegon for success in its chosen markets.”
Aegis the Union general secretary Brian Linn says: “For many members, today’s announcement brings months of uncertainty to an end. However, we appreciate that a considerable number of people are in areas impacted by redundancy and have some difficult choices to make.”