560 jobs axed by insurance giant

Published on Tuesday 12 May 2009 11:14

THE finance industry was hit with a fresh jobs blow today when plans were announced to axe up to 560 posts at insurance giant Legal & General.

Unite said it had been told the cuts will affect staff in the firm's processing centres across the country, hitting areas including Surrey and Brighton.

The union said it will oppose compulsory job losses and urged the firm to explore alternatives to job cuts.

National officer Rob MacGregor said: "The decision by Legal & General to make up to 560 workers redundant is extremely disturbing in any circumstance. This distress will be compounded within the current economic climate.

"Unite has challenged Legal & General on the impact that this significant staff reduction will have on their plans for recovery following the current downturn.

"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."

The move came less than 24 hours before new unemployment figures tomorrow which are expected to show another huge jump in the jobless total.

A Legal & General spokesman said: "L&G has entered into consultation with collective representatives over potential redundancies within its UK business.

"L&G will keep any potential redundancies to a minimum and will try to find suitable alternative employment for staff affected.

"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."