Prudential set to axe hundreds of sales jobs

Insurance group Prudential is to cut almost 1,500 jobs in a major overhaul of its sales operations, the company announced today.

Insurance group Prudential is to cut almost 1,500 jobs in a major overhaul of its sales operations, the company announced today.

About 1,500 posts will be lost from its sales operation, and there are also losses expected as a result of the closure of all 103 branches tthe insurance group operates.

The group said the axe would also fall on Scottish Amicable, the insurance firm it acquired in 1997.

In January next year Scottish Amicable will set up a telesales operation in Glasgow.

Prudential said the telesales centre in Glasgow would create an extra 120 positions.

John Elbourne, chief executive of UK operations at Prudential, said the cuts were aimed at helping the group maintain its market leading position and provide products "in a cost-effective manner".

The overhaul will cost Prudential £90 million to implement, but in the longer run will save the group £60 million a year, the company said.

Tobacco giant BAT is cutting its workforce back with the loss of 510 jobs - 440 from a plant in Spennymoor, County Durham and another 70 from a plant near Southampton. The company blames the loss of duty-free shopping for the staff reductions.