Prudential to cut 2,100 jobs

Prudential has confirmed it's to cut 2,100 jobs, more than 20% of its UK workforce. Jobs are expected to go at its many offices including Belfast.

It says 1,000 of the job losses will be compulsory redundancies.

Prudential says the lay-offs - mainly in central back office and support functions - will cost it £170m by 2003.

Roger Lyons, general secretary of the Manufacturing, Science and Finance union, says: "We are engaging in detailed consultations with the company over the scale of the cuts. We will resist any compulsory redundancies among our members."

Union sources say 1,250 jobs will be cut from the Prudential's offices in Reading; 430 in Stirling; more than 200 in London; and 140 in Ilford. They say jobs will also go in Bristol, Belfast and Halesowen.

The life assurer has also announced the transfer of its general insurance division to Winterthur Schweizerische Versicherung- Gesellschaft, Credit Suisse Group's insurance unit.

Around 1,200 staff within the Prudential's general insurance arm will move across to Winterthur under the deal, which the Pru values at close to £810m. These staff are not included in the 2,100 job losses.

Winterthur will market motor and home policies under the Prudential brand through its UK Churchill operation, and will also take on the responsibility for underwriting the risk on Prudential's general insurance products.

It will pay Prudential £353m for the business, but Prudential says it will also generate £236m through a profit-sharing agreement. Mark Wood, chief executive of the Pru's UK and European insurance division, says the deal is "good news for shareholders, customers and employees alike".

In February, Prudential cut 2,000 jobs in the UK, including plans to phase out its "Man from the Pru" door-to-door sales force. Today, the company has announced it will be dropping its Scottish Amicable brand.