Legal & General (L&G) has confirmed plans to cut around 1,000 roles, representing about 10% of its workforce, by mid-2027 as part of a sweeping business simplification programme. The insurer and pensions group said the restructuring will streamline operations, reshape business units, and sharpen its focus on areas with the strongest growth potential.
Voluntary Redundancies First
Group Chief Executive António Simões informed employees of the proposal on Wednesday. The company will begin by offering voluntary redundancy packages in the UK, and it may move to compulsory job cuts if too few staff take up the voluntary scheme. L&G said unions would be consulted throughout the process.
In his message to staff, Simões explained that structures, processes and working practices developed across L&G over the past decade had left the organisation “more complex than we need to be.”
What the Cuts Mean for L&G’s Divisions
The asset management arm, which manages about GBP 1.2 trillion globally, will be excluded from the programme after completing its own restructuring last year. The latest reductions are expected to fall mainly on group functions and the company’s life insurance and pensions businesses.
Simões’ Simplification Strategy
Simões, who joined L&G as group chief executive on 1 January 2024 after senior roles at HSBC and Santander, said the company has spent the past two and a half years simplifying the group around three core businesses.
Recent strategic moves include the sale of L&G’s US protection business to Japan’s Meiji Yasuda for USD 2.3 billion. Under the transaction, Meiji Yasuda also acquired a 20% economic stake in L&G’s US pension risk transfer unit and a 5% stake in the group. L&G has also abandoned plans for a China license and begun the sale of housebuilder Cala.
Job Cuts Come After Strong Results
The redundancy plan follows stronger half-year results announced in August. Core operating profit rose 7% to GBP 918 million, while core operating earnings per share increased 11%. The Solvency II coverage ratio stood at 201%, above the company’s 160%-190% operating target.
A GBP 1.2 billion share buyback is underway, and L&G expects to return more than GBP 5 billion to shareholders between 2025 and 2027. The company has not yet disclosed expected savings, restructuring costs, or the timing of financial benefits from the job cuts.