Prudential to cut 2,000 sales-related jobs
Prudential is to cut its entire direct sales force with the loss of 2,000 jobs and at a cost of £110m.
The company, which has radically reduced its direct sales team in the past 18 months, says the overhaul will save it £135m a year.
Prudential says it will now get new sales by investing in its telephone and internet services.
The present sales force of 1,400 will be replaced by a smaller specialist force of qualified advisers providing a face-to-face financial planning service.
This team is expected to grow to around 250, while there will also be a 100-strong operation providing catering for corporate business clients, small and medium enterprises and affinity groups.
Analysts say companies such as Prudential are increasingly under pressure to cut overheads, and the introduction of the low-cost stakeholder pension has accelerated those moves.
Prudential chief executive Jonathan Bloomer says: "The UK marketplace is experiencing dramatic change which presents enormous opportunities and long-term potential for Prudential.
"I am confident that by transforming our business model we are well placed to take advantage of these opportunities going forward."
Prudential says that after allowing for redeployments, 2,000 jobs will be lost within the sales force, sales support operations, central back office and administration support over the next 12 months.
The company's UK insurance operations will then employ 9,500 staff.
