Aegon to close half its sales offices and cut 106 jobs

Aegon is to close six of its 12 IFA-facing sales branches and is to cut 106 jobs as part of the restructuring of its UK business. 

The life company will cut 142 roles across the UK but create a further 36 jobs and close branches in Edinburgh, Leeds, East Midlands, South East, Watford and East Anglia.

It will keep open its sales branches in Glasgow, Manchester, Birmingham, London, Bristol and Guildford.

Aegon will move new business processing to its Edinburgh customer service centre from its regional offices.

It said that it will seek to avoid compulsory redundancies and has begun consultations with Aegis, the trade union of Aegon workers.

Aegon announced in June that it planned to cut UK costs by 25% by the end of next year, equating to cuts of £80 million a year. It employed 630 sales staff around the country before the cuts.

Duncan Jarrett, Aegon UK sales director, said the new sales structure would still be able to serve advisers' needs, and pointed to a pilot study Aegon had conducted showing many advisers believe a telephone-based support service is more efficient.  

‘The financial advisory market is changing rapidly, as advisers prepare their business models for the changes brought about by the retail distribution review, and make greater use of technology in running their business. Our new sales structure reflects Aegon’s commitment to the adviser market,’ he said.

Aegis, the trade union of Aegon workers, said the announcement was a major shock and came at a worrying time for the UK financial sector.

'This is a very worrying time for the UK finance industry in general as companies look to reposition, restructure, and reduce operating costs,' said Aegis secretary Brian Linn.