British company Legal & General (LGEN.L) plans to cut its workforce by approximately 10% (or around 1,000 jobs) by mid-2027. CEO Antonio Simoes informed employees of this on Wednesday, UNN reports, citing Reuters.
The publication notes that Britain’s largest asset management company is seeking to optimize costs and improve the efficiency of its operations.
The planned cuts are part of Simoes’ strategy aimed at simplifying the structure of the large financial group, which has a 190-year history. The company previously sold its homebuilder Cala and merged its investment divisions, promising shareholders higher returns.
L&G shares were down 0.8% at the latest close, while the FTSE 100 index fell 0.2%.
Although the share price has risen 13% since the beginning of 2026, the company’s performance in recent years has lagged behind that of competitors such as Aviva (AV.L) and the broader market. This has prompted speculation that the company could become a takeover target. Simoes said the company was not considering a sale.
"To successfully implement our strategy, we must ensure that our ways of working are aligned with the business we are becoming. Across L&G, we need to change our approach to work and, as a result, become a leaner organization. By the middle of next year, we plan to reduce our workforce by approximately 1,000 positions," Simoes said.
He added that L&G’s structure had become overly complex over the past decade. The company is launching a voluntary workforce reduction program but does not rule out compulsory redundancies.
An L&G representative said the changes would help the company focus investment on areas with the greatest growth potential, and also noted that trade unions would be consulted regarding the cuts.
Jaguar Land Rover confirms job cuts to save $2.3 billion05.09.26, 20:29
The asset management division—one of L&G’s key business areas, alongside life insurance and pension products—will not be affected by the cuts, as it underwent restructuring last year.
Simoes, who took over as head of L&G at the beginning of 2024, is working to improve operational efficiency and increase the value of the group’s shares. In August, L&G reported an increase in operating profit for the first half of the year and raised a number of its performance targets, although it noted a decline in the number of deals in the pension risk transfer segment, despite forecasts of a significant volume of future contracts.