Insurance and investment firm Standard Life has revealed that its merger with Aberdeen Asset Management would result in 800 job losses.
The two companies agreed in March on an £11 billion all-share merger which will see Aberdeen shareholders own 33.3% and Standard Life shareholders own 66.7% of the new business.
The merging firms said in a prospectus that they expect “to achieve cost synergies where duplication exists and by taking advantage of opportunities to leverage the additional scale of the combined group.”
Around 10% of the current combined workforce would be reduced due to the merger, according to the firms.
“At this time it is estimated that the integration and restructuring will result in a phased reduction of approximately 800 roles from the total global headcount of the Combined Group as at 31 December 2016 of approximately 9,000 over the three-year integration period.
“Synergies will come in part from employee departures arising from natural turnover. Other appropriate steps will be taken to minimise the number of compulsory redundancies, including the active management of Standard Life’s and Aberdeen’s recruitment and vacancies,” the companies said.
The firms also plan to maximise operations by streamlining and consolidating premises where they already operate from multiple locations in geographic proximity.
It has also been revealed that the merged firm will be named Standard Life Aberdeen, although it may use different names for its products.
Standard Life and Aberdeen will each have eight representatives to the board of directors for the combined group.
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