Aegon to axe more Scots jobs and seek options for IFA businesses

AEGON, the life and pensions company, will unveil another round of job losses in Scotland this week as it steps up its restructuring programme.

• Adrian Grace

It is thought about 50 jobs in finance and employee benefits will be lost as part of an expected total of 600 jobs being taken out of the Edinburgh offices. Aegon UK's Dutch parent announced in June that it wants a 25 per cent cut in its British operations, equating to 80 million a year.

There is also continued market speculation about Aegon's plans for the independent financial adviser companies it owns, Origen and Positive Solutions.

Both firms have already implemented a series of measures to improve efficency in the past year. Origen went through a restructuring programme in 2009, shedding 72 roles, and is currently looking at other ways to improve business performance. Aegon is working with London-based Fenchurch consultants on further options.

The company's chief operating officer Adrian Grace, who is overseeing the restructuring, says it is regrettable that jobs had to be lost, but insists it is necessary to get the company back on an even keel.

"Our restructuring programme is going to plan and, given that the project began in June, we've made significant progress," he told Scotland on Sunday.

"I'm determined that we execute well on the programme and that it achieves the objectives we want it to. Of course there are difficult decisions to be made, but unfortunately they are decisions that are necessary to ensure the long-term success of the business."

The company received a setback on Friday when one of two trade unions rejected a proposed pay freeze aimed at saving 2.5m a year.

The results of a ballot showed that members of Aegis voted in favour of accepting the freeze while Unite was against.

Aegon, which employs 2,400 staff in Scotland, proposed not to award an increase in pay to either staff or management in January. The company will meet the union representatives this week to discuss their next move.

Grace said: "Proposing a pay freeze is something we considered very carefully, and we believe is the right thing to do to help achieve our cost-saving targets. We are taking a steady, disciplined approach to the restructure. I want us to get things right, and that takes time.

"A restructure of this size is not without its challenges, but we have a good team of people. Otto (Thoresen, chief executive] is very clear on what the programme has to achieve."