Next Steps of UK Business Re-engineering Announced
Prudential PLC
2 November 1999
PRUDENTIAL PLC ANNOUNCES NEXT STEPS OF UK BUSINESS RE-ENGINEERING
Prudential plc today announced further structural changes to its Prudential
Retail and Scottish Amicable sales forces which will take place in the next 12
months. The changes are designed to ensure that Prudential retains its leading
position in an increasingly competitive market place.
The proposed changes to Prudential Retail are in two phases: the first will
result in around 600 financial consultants and 240 associated sales management
staff leaving the business by the end of the year. As a result, the direct
sales force will be reduced in number from 2600 to approximately 2000. The
second phase, which results from the considerable investment already made in
technology in order to simplify the sales process and improve productivity,
will involve the closure of all 103 branches and a further reduction of around
400 in branch support staff. Branches will be replaced by around 10 area
centres which will provide localised management and training support.
In January 2000, Scottish Amicable will be opening an IFA telesales operation
and integrated support function in Glasgow, which will lead to the creation of
120 jobs. As a result, Scottish Amicable's IFA field sales team will be
restructured along product-focused lines, resulting in a reduction of around
50 jobs by the end of this year. A further 155 jobs will be lost by next April
in the regional sales support infrastructure. As previously announced, M&G's
life and pensions operations will be transferred to Scottish Amicable during
2000.
John Elbourne, Chief Executive UK operations, said:
'Prudential aims to maintain its market leading position in an increasingly
competitive market place. Central to this is our ability to offer our
customers value for money products in the most cost-effective manner.'
The cost of these changes will be approximately £90m of which £15m will be
borne by shareholders and will be charged in 1999. This will result in
annualised savings of around £60m which will arise primarily in the life fund.
In June 1999Prudential announced the previous stage of the restructuring process
which is expected to result in annualised savings of £200m by 2002. The combined
cost of both stages is £240m, of which £70m relates to shareholders and will be
included in the 1999 results as an exceptional item.
For further information contact
Media Jeremy Reynolds 0171 548 3721, Jo Wright 0171 548 3500
Analysts David Doyle 0171 548 3753
Latest directors dealings
- 15 hours ago Savannah Energy
- 16 hours ago Buccaneer Energy PLC
- 16 hours ago Savannah Energy
- 17 hours ago Carclo
- 17 hours ago Schroder Japan Growth Fund