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Aegon axes 116 jobs and scraps Aegon Direct

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.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. This is a real shame. I built this business for AEGON, which was profitable, well liked by its clients and had real potential for AEGON’s future post RDR.

    the short term, cost saving issues in AEGON have killed this small but effective business. However, the long term cost to them is that they will no longer have any form of regulated advice service for their partners or their own clients not currently served by an adviser elsewhere. Neither will they have any distribution capability themselves, which means they need their IFA friends, who frankly are confused on where the overall AEGON proposition will end up.

    I left the business a few weeks ago as I could see where it was going. The dedicated staff losing their jobs do not deserve this.

    I’ll say it again, a real shame

  2. *Sigh* Will the last person to leave AEGON please turn out the lights?

  3. I too left AEGON recently, there were too many permenant staff members being replaced by offshore Indian companies willing to work for a lot cheaper. They claim this wasnt the case and the work load was reducing hence why people were being made redundant but for those in the offices, they could see every time a perminent member of staff left, an offshore member took their seat. There should be laws against this sort of thing.

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