The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Insurance, Reinsurance And Pension Funding, Except Compulsory Social Security 65 - Insurance, reinsurance and pension funding, except compulsory social security
700 - 800 jobs Number of planned job losses
Announcement Date
21 June 2006
Employment effect (start)
Foreseen end date
Description
Financial Services firm Old Mutual plans to cut up to 800 jobs over the next three years at Skandia, the Swedish insurer it acquired this year for more than £3bn and employs 5,800 worldwide. Jim Sutcliffe, chief executive of Old Mutual, said the London-listed South African financial services group would cut between 700 and 800 jobs from Skandia's operations. About 600 jobs will be lost in the UK, at Skandia's UK head office in Southampton and at the international arm of Skandia UK, based in the Isle of Man. About 50-100 jobs will be lost in Stockholm, with a further 50-100 cut in Skandia's operations across the rest of the world. Old Mutual faced a protracted battle to acquire Skandia. However, Mr Sutcliffe was hopeful that the job cuts would not spark further tensions in Sweden.
'These things will not attract a round of applause,' he said.
'We have tried quite hard to go out and talk to people so they understand why we are doing what we are doing.'
He said 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.It expected this, together with the operating efficiency gains, to triple Skandia's contribution to Old Mutual's earnings under international financial reporting standards by 2008.
Sources
21 June 2006: The Financial Times
Citation
Eurofound (2006), Skandia, Merger/Acquisition in World, factsheet number 63672, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63672.
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