Legal & General will slash at least 250 jobs following its decision to close the flagship Kingswood office.
In June, Mortgage Strategy’s sister title, Money Marketing, revealed the insurer was planning to leave its iconic Surrey headquarters.
A note sent to all staff from the HR department, seen by Money Marketing, confirms the office will close between now and 2017. As a result, all 1,700 roles at the location are under review, with the firm estimating a minimum of 250 job cuts.
Other roles could be moved to Cardiff, Hove or London, or staff will work from home.
The note says: “We need to reduce costs. Location costs are our largest expense after technology and employees – Kingswood is our second most expensive location after Coleman Street.”
It adds: “Because our divisions, group functions and customer services are spread across locations, it makes it harder for us to work effectively to deliver great service and solutions.”
Half-years results, published last month, show the firm will incur £40m in restructuring costs in a bid to deliver £80m of cost savings this year.
Unite regional officer Ian Methven says: “Many of our experienced members have specialised pensions knowledge that is highly valued by customers, yet L&G seems prepared to throw that all away in a reckless rush to make short-term savings.”