Pru jobs 'under threat'

Jobs in the UK business of Prudential looked under threat today after it was reported the insurer planned to announce a major outsourcing drive.

The group’s chief executive Mark Tucker is expected to set out a series of restructuring proposals alongside full-year results on Thursday.

The Sunday Times said the plans may include huge savings from outsourcing jobs involved in running the back-office operations of its UK closed funds to its existing Indian operation in Mumbai. Another option under consideration is to outsource additional functions to support service firms such as Capita.

The Pru may also withdraw from writing unprofitable business in the UK, such as individual pensions and unit-linked bonds. It will instead focus on its more successful annuities business, which accounts for around 60% of UK profits.

Mr Tucker is under pressure to come up with a strategy for the UK life business after its performance lagged the rest of the market. Some analysts had pondered the possible sale of the entire UK operation, which has overshadowed the Pru’s progress in the growing Asian and American markets.

The company employs around 23,000 people worldwide, with more than 6,000 serving the UK from sites in London, Reading, Stirling, Belfast and Mumbai.