Pension firm to axe jobs in cost-cutting operation

LIFE and pension company AEGON has announced it is to close parts of its business and axe senior management jobs as part of a restructuring of its UK business.

The company's third party pension administration and its employee benefits software businesses will be closed as they are not "core to its future proposition".

AEGON will retain its life insurance and protection business and the closed book of business of Guardian Financial Services following a review.

The company is attempting to cut costs by 25 per cent and a statement said "a broad range of cost-saving measures will be introduced" with a "streamlined" management and organisation structure in place by the end of 2011 resulting in the loss of a number of senior management roles.

The third party pensions arm is part of AEGON Trustee Solutions business unit and employs 82 people in Cheshire. The remainder of the Trustee Solutions business in Edinburgh will be retained.

Meanwhile the Royal Bank of Scotland has announced it is to axe around 500 jobs.

Most of the losses are expected to be back office roles within the investment banking arm, including Edinburgh staff.

The proposed cuts come after the part-nationalised bank announced 3,500 positions would go earlier this month. This followed the division's 9,000 job cuts announced last year.

In a statement, RBS said: "In response to changing market conditions, we have made efficiencies across our business to ensure that we have the right people and resources in place to meet our client needs.

"We will do all we can to support our staff, offer redeployment opportunities wherever possible."