Page last updated at 16:56 GMT, Wednesday, 25 March 2009

Insurance giant to axe 650 jobs

Legal & General offices in London
L&G announced job cuts after reporting a 1.5bn loss

Insurance firm Legal and General (L&G) is to cut 10% of jobs in its 6,500-strong life and pensions division.

L&G made the announcement after reporting a £1.5bn annual loss, and said it was cutting costs as it fought the recession and stock market turmoil.

The company, which has offices in Surrey, Hove, Cardiff and London, said the figure included 450 job losses announced last month.

The Unite union said its members would be "angry and disappointed".

National officer of Unite, Andy Case said: "Unite will do all it can to ensure that the number of job losses is reduced through redeployment and re-training.

We expect difficult economic and market conditions to continue
Tim Breedon

"We will also be ensuring that, wherever possible, voluntary redundancy is offered to reduce the number of compulsory redundancies."

And he added: "In the current economic climate we are more committed than ever to doing everything possible to defend members' jobs."

L&G said the job losses this year would mirror similar levels last year when the firm reduced its headcount by 10%.

The cuts would be made across central functions such as finance, human resources and risk compliance.

Tim Breedon, group chief executive of L&G, said: "We expect difficult economic and market conditions to continue.

"Going forward through 2009 we are taking a prudent approach to new business - ensuring that we balance our appetite with cashflow growth and balance sheet consolidation.

"We will be increasingly selective of the new business we write - targeting products with low capital strain, shorter payback periods and less risk to capital."



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SEE ALSO
HSBC says 1,200 workers face axe
25 Mar 09 |  Business
L&G plans to cut up to 450 jobs
25 Feb 09 |  Business

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