Legal & General cuts 560 savings staff

12th May 2009 12:16

Legal & General is to cut up to 560 jobs in its savings division and has started consultations with staff over possible redundancies. Some 300 full-time workers and 260 contractors are likely to be affected by the cull, which is part of a 10% workforce reduction this year flagged up by chief executive Tim Breedon. L&G cut 450 staff in February."Potential redundancies are being driven by changing business demand, operational efficiencies, and the continued refocusing of the savings business towards modern, flexible, capital-lite products," a Legal & General spokesman told reporters. "L&G will keep any potential redundancies to a minimum and will try to find suitable alternative employment for staff affected," L&G added.Other insurers have also been shedding staff recently. Rival Aviva cut 1,700 jobs last month. Union Unite described the announcement from L&G as "extremely disturbing". "The union is calling on the financial services sector to ensure that they do not simply take short-term decisions to cut staff, without consideration for future levels of service and their ability to recover from the recession," it said.