Skandia UK is cutting 86 jobs from its operations team, which serves the firm’s platform and life arms. The team has just over 900 people and is responsible for processing new business valuations and other administration duties.
The jobs are all based in the Southampton office, where Skandia has 1,600 staff.
Skandia is currently going through a consultation process with affected staff, which is expected to last around eight months. The firm insists there will be no negative impact on customer service as a result of the cuts.
A Skandia spokesman says: “Business transacted online is now at a record high, with 95 per cent of new business and nearly all top-ups and switches being transacted online. This means we can now reduce the number of back-office support functions without impacting the level of service we provide.”
Old Mutual Wealth Management recently announced that chief executive Bob Head is leaving the firm in October. Head was responsible for reducing costs at Skandia by £45m and closing nine Skandia UK regional offices, which involved 250 job cuts.
The firm says the latest round of cuts are part of a separate cost-cutting exercise and it does not expect to be making any more job cuts in the Southampton office in the near future.
Mackenzie Taylor Wealth Management director Ken Taylor says: “The question is can Skandia improve its service at the same time as it is cutting staff?”