Legal & General to Cut 1,000 Jobs in Shake-Up by CEO Antonio Simoes Amid UK Job Gloom

Insurance giant Legal and General (L&G) is set to eliminate 1,000 positions, representing approximately one-tenth of its workforce, as part of a strategic shake-up initiated by chief executive Antonio Simoes. This move comes amid a deepening jobs gloom in the United Kingdom, with separate figures indicating that private sector employers have been cutting jobs monthly for the past two years.

Simoes, who took the helm in 2024, launched the restructuring to simplify the business and move away from the legacy of his predecessor, Nigel Wilson. In an internal email, Simoes stated that various structures and processes developed over the last decade have made L&G more complex than necessary. He emphasized the need for a leaner organization that aligns with the company's evolving strategy.

The workforce reduction will primarily involve a voluntary redundancy program in the UK, though the company may consider mandatory cuts depending on the uptake. Most of L&G's 10,000 employees are based in the UK. The planned cuts do not affect the asset management division, which is already undergoing its own restructuring and shedding about 70 jobs. The company indicated that the rising use of artificial intelligence (AI) was not a major factor in this decision, nor are the cuts expected to impact the graduate hiring program.

This initiative is part of a broader plan by Simoes, who has already reorganized the group from four divisions into three and divested assets such as housebuilder Cala Homes. He has also appointed a new executive team and committed to returning over £5 billion to shareholders between 2025 and 2027.

L&G's announcement coincides with the release of purchasing managers' index (PMI) data, compiled by S&P Global, which shows a continued decline in UK jobs. The report highlighted that employment numbers decreased in September, marking two consecutive years of job losses. The overall PMI reading for September was 51.7, the lowest in three months, suggesting quarterly economic growth of just 0.1%.

Chris Williamson, chief business economist at S&P Global Market Intelligence, attributed the hiring slowdown to subdued business confidence, high costs, and uncertainty over government policy, particularly in the lead-up to the budget. L&G shares, despite a 12% rise year-to-date, saw a 0.8% dip following the announcement.