Legal & General to Cut 10% of Jobs by Middle of 2027

Insurance and pensions firm Legal & General announced plans to reduce its workforce by 1,000 jobs by mid-2027, about a tenth of its 10,000-strong British employee base. The cuts, aimed at creating a "leaner organisation", were first reported by Bloomberg News and confirmed by the company on Wednesday.

CEO António Simões initiated the voluntary redundancies in the UK, with the possibility of mandatory job cuts depending on the take-up. The fund management division, which manages £1.2tn in assets, is excluded from the restructuring, as it has its own plan. Simões, who took over from Nigel Wilson in January 2024, has been focusing on L&G's growing pensions arm, merging its asset management divisions and selling non-strategic assets like housebuilder Cala Homes.

Simões emphasized the need for change, noting that L&G's complex structure and outdated processes have hindered the company's agility. The CEO pledged to return over £5bn to shareholders through dividends and share buybacks between 2025 and 2027.

L&G's spokesperson highlighted that the restructuring will enable the company to focus resources on areas with the strongest growth potential. The firm expects £500bn in transactions in the UK pensions market over the next decade, driven by employers transferring old defined benefit pension plans to insurers and pension companies. Additionally, strong auto-enrollment of staff in their companies' pension schemes has led to about £1bn in new inflows each month.