Skandia

Type
Merger/Acquisition
Country
United Kingdom
Region
South East (England); Hampshire and Isle of Wight;
Location of affected unit(s)
Southampton, Isle of Wight
Sector
Financial / Insurance/ Estate
65 - Insurance, reinsurance and pension funding, except compulsory social security
65 - Insurance, reinsurance and pension funding, except compulsory social security
65 - Insurance, reinsurance and pension funding, except compulsory social security
600 jobs
Number of planned job losses
Job loss
Announcement Date
21 June 2006
Employment effect (start)
Foreseen end date

Description

Financial Services firm Old Mutual plan to cut 600 UK jobs at Skandia, the Swedish insurer it acquired this year for more than £3bn. The job losses will be based at Skandia's UK head office in Southampton and at the international arm of Skandia UK, based in the Isle of Man. Skandia employ 1700 in the UK in total. Jim Sutcliffe, chief executive of Old Mutual, commented:

'These things will not attract a round of applause. We have tried quite hard to go out and talk to people so they understand why we are doing what we are doing.'

He also said that natural turnover would account for a 'significant component' of the reductions although there would be some compulsory redundancies. The job cuts are part of plans to save £70m a year by the end of 2007 and to meet ambitious growth targets set out yesterday. Old Mutual said it expected Skandia's funds under management to increase by 15 per cent a year, doubling in five years.

Sources

  • 21 June 2006: The Financial Times

Citation

Eurofound (2006), Skandia, Merger/Acquisition in United Kingdom, factsheet number 63671, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/63671.