NEWS: Sub-Standard Life

MARK McLAUGHLIN
Evening News (Edinburgh)
September 2, 2010, Thursday

BANKS and business leaders have warned that more financial job losses are on the way, following the announcement that 600 posts are to be slashed at Standard Life.

The financial giant announced yesterday that the majority of the cuts - 480 posts - would come from its Edinburgh business, but said it would attempt to find new posts within the company for those affected.

However, with more financial cuts looming, many of those facing redundancy may struggle to find another job locally.

City development leader Tom Buchanan said: "We always knew that there would be more job losses in the financial sector. We just want to ensure that we can minimise these losses in Edinburgh and put appropriate measures in place to ensure re-employment."

Standard Life employs around 6000 people in Edinburgh, down from 10,000 in 2004.

The announcement comes on the back of a mass cull at RBS which has slashed 22,600 jobs since the banking crisis began.

Last week, the bank announced it was shedding a further 400 Scottish posts at its Direct Line insurance offices in Glasgow. RBS media relations manager Linda Harper today reiterated comments made by chief executive Stephen Hester that more cuts were on the way.

Insurer Aegon UK is expected to announce up to 600 more job losses later this month.

Standard Life public relations manager Nicola McGowan said: "We are aiming to reduce our reliance on contract staff so 100 of the posts to go will be contractors. We expect a further 100 to go through people moving out of the business naturally by the end of 2011.

"We have created 100 new posts in our technology and innovation business and will endeavour to recruit internally.

"We intend to centralise 50 jobs in the English regions to Edinburgh. Those filling these posts will have the opportunity to relocate."

Graham Birse, deputy chief executive of Edinburgh Chamber of Commerce, said: "Yesterday's announcement amounts to a reorganisation of their business rather than a dire warning on the future of the sector."

The news comes as it was confirmed that Edinburgh has slipped down from 28th on a list of the world's top financial cities - the Global Financial Centres report by research firm z/Yen.