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Standard Life to cut up to 500 jobs

Standard Life has announced it is cutting up to 500 jobs across the company over the next 15 months.

Up to 600 existing roles will be cut as part of the restructure, with the creation of up to 100 new jobs.

Out of the roles that are to be cut, around 100 are held by contractors and 24 are existing vacancies that will not be filled.

The affected roles are in Standard Life’s UK and international businesses and its group corporate centre.

Standard Life will now enter into a 90-day consultation with staff.

Chief executive David Nish (pictured) says: “As we transform Standard Life to deliver its growth ambitions, there is a need to both invest for future growth and actively manage our costs to be competitive.

“The decision announced today is part of the journey towards being a more adaptable and flexible organisation. Our people will be provided with the support they need while the group goes through this necessary change.”

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Comments

There are 19 comments at the moment, we would love to hear your opinion too.

  1. The world biggest lies 1st September 2010 at 12:24 pm

    Chief executive David Nish (pictured) says: “As we transform Standard Life to deliver its growth ambitions, there is a need to both invest for future growth and actively manage our costs to be competitive.

    The world biggest lies – Lie No: 1119

    “The new CHANGES wont affect you: the company will remain the same AND EVEN BETTER”

  2. The slogan: "Labour isn't working" 1st September 2010 at 12:51 pm

    The slogan: “Labour isn’t working” can now be replaced by “The FSA isn’t working”. RDR is going to create more and more unemployment as the lunatics in Canary Wharf make the financial services industry more and more unprofitable

  3. At a time when the FSA has trebled the number of personnel earning in excess of £100k a year is it not ironic that we can expect more companies to retract. Surely time to re-think the whole show, folks

  4. As RDR takes its toll 1st September 2010 at 1:26 pm

    So to all those Standard Life unemployed, all those Skandia unemployed and many others not least the predicted 10,000 IFA who will close shop over RDR – tell me how does it feel when you read that the people responsible for your unemployement have tripled the number of their own staff earning more than £100,000 in the last four years, in addition to the the £20m bonus the FSA paid folowing their banking failure in 2009! Oh and don’t place any faith in Mark (rubber stamp) Hoban MP – the New Labour MP is Tory Clothes!

  5. This is just the tip of the iceberg. Crunch will come in 2013 when only banks give advice!!!!!!

  6. When advisers get hacked off with poor service and at best get internet support this is why. Disgruntled life offfice staff who have lost their pensions, jobs, forced to relocate and take salary cuts are now commonplace.

    Bottom end staff are paid on a par with a supermarket, so experienced staff are in short supply. Those that do have experience usually have other talents and don’t need to work for the big product providers and fund managers.

    These companies strategies are to milk their UK business for cash flow and reduce costs to maximise that. The cash is being invested abroad, Far east, india etc.. to keep the shareholders happy, oh and so the directors get their mega bonuses.

  7. Start at the bottom by sacking Julie Russell

  8. Nothing like putting a positive spin on things. No signs of streamlining or increasing efficiency at Canary Wharf, though ~ and why should they, given that they have an inexhaustible cash cow available to be milked for whatever they claim they need to do their jobs properly? The trouble is though, it seems that no matter how many hundreds of millions of pounds of industry money the FSA guzzles up, it still seems unable to do its job properly.

    If anyone’s talking about the CPMA being either more efficient or less profligate than the FSA, I’ve yet to read of it. But we watch and wait, in hope if not expectation.

  9. FSA – I hope you are happy. You have managed to bring and entire industry, which has been around for centuries, to its knees in a decade and it will only continue to get worse over the coming years. You should look at the wider picture of what the new regs are going to do – thousands more unemployed in the insurance industry, thousands more that are attached to the indstry – gone. It will lead to a lack of profitablity which will only stifle future innovation. Well congratulations to all of you, you must be very proud of yourselves. And all this because a bunch of self opinionated windbags with only self indulgence in mind wanted to safe face? You have 4 statutory objectives and two of them are “Maintain confidence in the UK financial system” and “promotong public understanding of the financial system” You have totally failed customers and providers in these two and whats your latest piece of genius? The RDR!! – (Ridiculous Disasterous Regime). Each and evryone of you who voted to keep it should be completely ashamed of yourselves. You are going to end up with less people having access to financial advice leading to less sales of lower profit and lower quality products from fewer and fewer providers. I am not surprised that there were decenters in your ranks at board level. Some of them obviously can see that this thing is doomed to fail. Margaret Cole the other day tried justifying the number of highly paid staff at the FSA. I would love to know how many of those who voted against keeping the RDR are still there? Wake up and do the only logical and honourable thing. Scrap the RDR! It was never to achieve better customer outcomes and never will not in a zillion years- Its as plain as the nose on your faces to see that so for Christ’s sake have an ounce of decency for once and do what is right for the industry and customer – SCRAP IT before its too late and the whole ediface comes crumbling down and all you will do is try to pin the blame on its failure on the incoming reglators. They will have enough on their plates without trying to sort out the inevitable catastrophic disaster zone this leaves behind.

  10. I just hope there is one MP that reads this and understands the loathing for the FSA expressed in the above comments. The UK must understand that financial services is the only remaining jewel in the crown. The demise of Standard Life is a signal to the health of what remains. UK regulation (FSA/FOS) is not worthy of the indusrty it regulates.

  11. “No actuaries will be hurt in the making of this tale of woe”.

    Can’t say the same for the policyholders or the IFAs who were duped into recommending products which would never meet anyone’s reasonable expectations.

    This is another dinosaur which refuses to lie down and die while it is still connected to the jugular of the policyholders.

  12. And so more staff must fall on the sword for the cause If the man with the big stick says go then….. thanks for being the brokers whipping boys and I hope you enjoyed your few crumbs from the table whilst it lasted..
    Lets not consider families and their mortgages – theres now more expenses for the executives and champagne all round!.

    Cost cuts must me made my friend…. How about reducing commissions?.
    Roll on RDR – the industry is about to strike back at those that have been paid too much for knowing too little for too long.

  13. How many of the jobs lost at Friends Provident, Skandia, Standard Life et al can be traced back to the Governments/FSA fixation with costs (pity they dont make the same song and dance about the difference between SWAP rates and mortgage interest rates) which has virtually wiped out any profitability on products. In the 1% world I’m afraid that customer service is a thing of the past and more jobs will be lost throughout the industry.

    Unfortunately, as pointed out above, the people who lose their jobs are invariably the lower paid workers and not the ‘fat cats’ that someone in the corridors of power and media have fallen out with.

  14. GREAT BRITAIN IN DECLINE

    RDR = lower profit and less advisers.
    FSA = higher fees and more regulators
    Net result = far higher fees for those remaining reducing an already reduced profit margin.
    Sum total = collapse of UK finacial services and increased dependancy on state benefits and poor quality bancassurers. The last man standing will of course will be a regulator.

  15. I am a chartered engineer who suffered the demise of the manufacturing sector. During that period, my job was to rationalise, close factories, sell off capital equipment, cut costs and make people redundunt before eventually becoming a victim myself. The manufacturing sector has never really recovered from that period, but I then joined that financial services sector which was starting to grow through the development of innovative products such as personal pensions.etc.

    The financial services sector is now going through the same process, but what do we turn to now? THERE’S NO INNOVATION which has been stifled and the antics of the FSA pales into insignificance compared to the real problems now facing this Country, which currently has zero prospects and faces unemployment on a massive scale. This can only lead to civil unrest!!

  16. …you know what the French would do!..why do us Brits just bend over…

  17. To John Hooper

    Well put, but don’t expect the great unwashed to turn off Eastenders and go marching anywhere other than the pub.

  18. To John & Evan (and anyone else who cares) – it is instructive to take a look at what it was like to live in Argentina during the early ’90s. Fortune favours the prepared…

  19. Sorry guys, but where is the link between Standard Life restructuring and the FSA / RDR? Seems to me that every article published by MM is just another excuse for bashing the FSA / the RDR / the old government / the new government etc, etc. Perhaps it’s time a few on you changed the record? Just a thought.

    Oh and lumping people together as the “great unwashed” is really helpful.

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