Legal & General plans workforce cut in UK restructuring drive

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Legal & General UK job cuts

Highlights

Legal & General will cut around 1,000 jobs—roughly 10% of its workforce—through a voluntary redundancy programme by mid-2027, excluding its asset management division.
The restructuring follows a June 2024 simplification plan under CEO António Simões, reducing divisions from four to three and divesting non-core assets such as Cala Homes.
L&G shares have climbed nearly 15 per cent year-to-date but remained flat after the job cut announcement, amid slowing pension risk transfer activity in early 2024.

Restructuring plan targets 1,000 roles

As first reported by Financial Times, citing Bloomberg, Legal & General told staff in a memo on Wednesday morning that it is launching a voluntary redundancy programme aimed at cutting around 1,000 jobs. The reduction would amount to roughly a tenth of the insurer’s workforce.

A person close to the process said the company would move to compulsory redundancies if the 1,000 target is not met by mid-2027. L&G’s asset management division is excluded from this round, although that business is already carrying out its own job reductions under a separate programme called Project Catalyst.

L&G said the changes mark the next stage of its transformation and are intended to align its organisation and working methods with the business it is building. The company added that it is committed to supporting employees through the process and consulting with unions.

Cost focus comes amid market slowdown

The job cuts form part of a simplification plan set out in June 2024 after Simões took over from former chief executive Sir Nigel Wilson earlier that year. Since then, the group has reduced its business divisions from four to three and sold non-core assets including Cala Homes.

L&G has also reshaped its leadership team, including the appointment of Eric Adler from PGIM to run asset management, with an emphasis on expanding private asset products. The strategic changes come as pension risk transfer activity slows in the first half of this year, with consultancy LCP saying demand from the largest UK pension schemes has weakened.

Shares in L&G have risen almost 15 per cent so far this year after a weaker period for the stock. The shares were flat after news of the planned job cuts emerged.

In our earlier coverage of S&P Global Ratings’ updated Europe and UK outlook, we noted that stronger-than-expected demand led to higher 2026 growth forecasts for the eurozone and the UK. At the same time, the report cautioned that inflation pressures and elevated interest rates are likely to persist into 2026–2028, keeping borrowing costs and corporate planning conditions tight.

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