MGM Advantage is preparing to make large scale redundancies in response to radical annuity reforms announced by Chancellor George Osborne last month.
The provider, which currently employs 250 people, will cut 80 roles linked to its annuity business in anticipation of a drop in sales.
MGM says the job cuts will be managed “where possible” through natural turnover and voluntary redundancy but there could also be compulsory redundancies.
The company has confirmed chief financial officer Simon Whitehead will exit “to focus on interests outside the business”. He will be replaced by corporate development director Simon Smith.
MGM Advantage chief executive Chris Evans says: “It is clear the changes proposed in the recent Budget create many challenges for the industry. We have a great track record of responding to change, and it has become second nature to us over the last few years to adapt to opportunities that arise.
“In the need to respond quickly and effectively, we will focus on what we do best, developing innovative retirement income solutions. Advisers and our customers will continue to receive support through this transformation of the at-retirement market.
“In the interim, we need to align our cost base to our new business plan for the year. Although I am personally deeply saddened by any redundancy, I have a responsibility to lead the business into the best possible shape, ready for the opportunities created by the current market turmoil.”
Just Retirement customer insight director Stephen Lowe says: “It is too early to predict how consumers and advisers will change their behaviour as a result of the Budget. We are keeping a close eye on progress and we will update the market as and when we make any firm decisions.”
Partnership director of corporate affairs Jim Boyd says: “It is too early to assess the impact of the Budget on consumers and advisers.
“Clearly we will need to a close eye on the situation and if we do make any decision we will be very clear about that.”
The Budget reforms, which come into effect from April 2015, will allow everyone to take their entire pension pot as cash from age 55 without being hit with a 55 per cent tax penalty.
Early estimates suggest overall annuity sales will fall by 75 per cent across the market as a result of the Budget changes.
MGM says it is working on a “radical” new proposition for the retirement income market in response to the reforms that will available early next year.
This will include developing blended retirement solutions, revising the investment proposition and making product changes to the investment-linked Flexible Income Annuity.