Splitting insurer Old Mutual will axe more jobs in its London headquarters this year as part of an ongoing restructure.
The insurance firm said that it is now in the “final stages of a fundamental restructuring” of the head office in the UK capital.
The head office is being restructured to support a holdings company and Old Mutual’s plan to break-up into four standalone businesses.
The move includes 60 more job cuts in the office, which will reduce the total headcount by around 50% by the end of 2016.
Halving the head office staff would lead to £10 million in savings, the insurer explained.
Further headcount reduction could be expected, Old Mutual said, depending on how the company break-up develops.
Old Mutual announced in March that it will split into four businesses: a South African bank, an emerging markets unit, a US asset manager and a British wealth manager.
After five months, the managed separation process is “progressing well,” the company said.
“We are making good progress with our managed separation strategy we announced in March 2016 and which we expect to be materially complete by the end of 2018,” said Old Mutual chief executive Bruce Hemphill.
“At this stage, we are doing a lot of preparation work that will lay the foundations for the future and is critical for success,” he added. “We are clear about the task at hand and we are absolutely confident that this is the right strategy to unlock value.”
Old Mutual revealed the planned job cuts as it presented its half-year financial results. The insurer reported that its pre-tax profit declined from £683 million to £608 million.
For the second half of 2016, Old Mutual expects further challenges as “uncertain environment” continues in its three largest markets – South Africa, the UK and US.
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