Legal & General has announced plans to cut around 1,000 jobs by the middle of next year as part of a drive by chief executive Antonio Simoes to forge a "leaner operation".
The UK's largest asset manager notified staff via email on Wednesday that it has launched moves to cut 10 per cent of its workforce. The programme will encompass voluntary redundancies in the UK, though the firm did not rule out compulsory cuts depending on the level of uptake.
CEO outlines need for change
"Over the last decade, different structures, processes and ways of working have developed across L&G, making us more complex than we need to be," Simoes told staff in an email.
"To deliver our strategy successfully, we now need to make sure the way we work reflects the business we are becoming. Across L&G, we need to change how we work today and, through this, become a leaner organisation. By the middle of next year, we expect to reduce the size of our organisation by around 1,000 roles."
Restructuring and shareholder returns
The fund management division, which oversees £1.2 trillion in assets, is excluded as it has its own restructuring plan, as reported by City AM.
Simoes has been trimming the company's headcount since succeeding former chief executive Nigel Wilson in January 2024. Simoes, who previously held senior roles at Santander and HSBC, has since unveiled plans to sharpen its burgeoning pension arm and streamlined the group's four business divisions into three through a merger of its asset management operations. He has also assembled a new executive team and committed to returning more than £5bn to shareholders between 2025 and 2027 through a combination of dividends and share buybacks.
Company response and market performance
An L&G spokesperson said the changes represent the "next stage of transformation", enabling it to shift resources and investment towards areas where it sees "the strongest opportunities for long-term growth".
Shares have climbed 11.9 per cent since the start of the year to 293.3 pence per share, yet have lagged behind rivals such as Aviva and the broader market over recent years.
