Aegon unveils latest cuts as 213 are axed and 106 'outsourced'

Aegon is to axe more than 200 roles and outsource another 100 in the latest phase of its £80 million cost-cutting programme.

Staff at the firm's UK headquarters in Edinburgh were told yesterday that 213 roles are being cut in the group's marketing, IT and personal support functions, with further 106 roles being transferred to supplier firm Oc.

Aegon has now cut 557 of the estimated 600 roles to go under a restructure that began last summer, aimed at slashing annual costs by 25 per cent, or 80m, by the end of 2011. It revealed in its quarter one results last week that 37m of the 80m target had already been met. The savings from the latest cuts will be disclosed later this year.

Adrian Grace, who replaced Otto Thoresen as chief executive last month, said the firm was on track to meet its cost-saving targets by the end of this year.

"This is a challenging time for our people and business but a lower cost base is essential to ensure Aegon remains a strong and successful business," he said.

Brian Linn, general secretary of the Aegis union, said it would oppose any compulsory redundancies at Aegon. "We recognise the current challenging business environment but are hopeful that job losses will come through volunteers," he said.