Aegon takes axe to jobs in cost-cutting

The group aims to cut costs in Britain by 25 per cent by the end of next year under a plan to refocus the business and pull out of unprofitable areas.

Aegon said it was too early to say how this would hit staff, but it plans to give more details at the end of September.

The group's UK life and pensions arm will take the brunt of the cost-cutting. The division employs about 2,400 staff in Edinburgh, 670 at Lytham St Annes, Lancashire, and 630 in sales across Britain.

Aegon chairman Alexander Wynaendts said plans to trim annual UK costs by 80m would have a "significant" impact on its British workforce.

He confirmed the company had looked at a possible sale of the UK business, but decided it would not offer the best value for shareholders. The restructure would see it make a "long-term commitment to the UK".

Aegon plans to withdraw its UK business from bulk annuities – bought by firms that run final salary pension schemes to provide an income for their workers who retire.

It will instead focus solely on the "at retirement" market and workplace savings, including the popular DIY-style self-invested personal pensions (SIPPs).

The group stressed its cost-cutting review would not have an impact on Aegon Ireland.

The UK asset management business and distribution arms, Origen and Positive Solutions, were also not hit by the review.

Aegon was forced to take state aid from the Dutch government at the height of the financial crisis and still owes 2bn euros (1.7bn).