The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Insurance, Reinsurance And Pension Funding, Except Compulsory Social Security 65 - Insurance, reinsurance and pension funding, except compulsory social security
New offshoring locations
3,000 jobs Number of planned job losses
Announcement Date
7 February 2007
Employment effect (start)
Foreseen end date
Description
In February Prudential announced that it was exporting 210 jobs to India as part of a wider move to use cheaper centres offshore. Just a month later, in March 2007, the company announced 3,000 job cuts within the UK. Union officials warned that more jobs were at risk as the company increased their reliance on offshore centres to drive down costs. Amicus, the finance union, said Prudential needed to come clean about plans for the UK business or risk a collapse in morale. The savings will come from internal cost-savings as well as the offshoring and outsourcing of more jobs. Prudential will focus on areas such as annuities and is buying Equitable Life's with-profits annuity portfolio. The Pru's life and pensions business employs about 6,000 people, including 2,400 in Stirling and 1,900 in Reading. Prudential also confirmed that it is considering a redistribution of its inherited estate, which is the extra money built up in its with-profits fund once it has met its commitment to policyholders. The review of its domestic business was launched after Prudential fought off a merger approach from rival Aviva. 'Whether our cost savings come from more offshoring or more outsourcing we have yet to determine', said Nick Prettejohn, chief executive of Prudential UK. News of the overhaul came as the company released better-than-expected annual results, with pre-tax operating profits up 15% to 1.98 billion GBP.
Sources
7 February 2007: The Guardian
15 March 2007: BBC Website
Citation
Eurofound (2007), Prudential, Offshoring/Delocalisation in United Kingdom, factsheet number 64903, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/64903.
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