Legal & General (L&G) plans to eliminate around 1,000 roles, equivalent to about 10 per cent of its workforce, by the middle of 2027 as the UK financial services group seeks to simplify its operations and reduce costs.
CEO António Simões informed employees of the planned reduction on 23 September. The company will initially seek voluntary redundancies in the UK, but has not ruled out compulsory cuts depending on the response to the programme.
The cuts form part of a wider restructuring under Simões, who took over as CEO in January 2024. Since then, the 190-year-old group has reduced its four businesses to three, combined its investment management units and sold assets including housebuilder Cala Homes.
Explaining the latest move to employees, Simões said that different structures, processes and ways of working had developed across L&G over the past decade, leaving the organisation more complex than it needed to be. The company now wants to create what he described as a “leaner organisation”.
L&G said the changes would allow it to direct resources and investment towards areas where it sees stronger opportunities for long-term growth. The company will also consult unions over the proposed reductions.
The group’s asset management division will not be included in the latest round of cuts because it is already undergoing a separate restructuring. The business, which manages around £1.2 trillion in assets, is one of
L&G’s three main divisions alongside its insurance and pensions businesses.
The workforce reduction comes as Simões continues to reshape the group around fewer businesses and a lower cost base. L&G reported higher operating profit in its half-year results in August and raised several performance targets.
For employees, the restructuring is expected to unfold over several months rather than through an immediate round of layoffs. The initial emphasis on voluntary departures gives L&G an opportunity to reach part of its 1,000-role target before deciding whether compulsory redundancies will be required.
