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Business News

Legal & General seeks 560 redundancies

Insurer Legal & General is in talks with unions to make up to 560 staff redundant, a spokesman for the group said today, marking the latest in a wave of job cuts to hit the financial sector.

The L&G spokesman said the redundancy target included 300 full-time positions, with temporary contracts accounting for the remainder.

The Unite trade union said L&G's plan was "disturbing," and it would fight any attempt to impose compulsory redundancies.

"Unite will be opposing any suggestion of compulsory job losses and urging the company to explore alternatives," national officer Rob MacGregor said.

The British financial services sector has been hit by a series of large-scale job losses as companies retrench in the wake of the global banking crisis.

Last month, rival insurer Aviva said it would shed 1,690 permanent and temporary positions, while part-nationalised lenders Royal Bank of Scotland and Lloyds Banking Group announced 9,000 and 985 job cuts respectively.

L&G today said it would try to redeploy affected staff to minimise actual job losses. "L&G will keep any potential redundancies to a minimum and will try to find suitable alternative employment for staff affected," it said.

In March, L&G chief executive Tim Breedon told reporters staff numbers had fallen about 10 per cent in 2008, and were set to drop by a "not dissimilar" amount this year.

L&G shares were 0.7 per cent higher at 68.4 pence by 9:40 am., while the FTSE 100 share index was up 0.3 per cent.