800 jobs to go in £11bn Standard Life merger

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The planned £11bn merger between Standard Life and Aberdeen Asset Management will result in 800 job cuts, it has been disclosed.

Standard Life set out the numbers in a prospectus for the the tie-up between the Scottish-based companies, two of the UK’s biggest fund managers – plans for which were first revealed by Sky News in March.

The merger aims to create a global industry powerhouse and bring £200m a year in annual cost savings.

Currently the two companies employ more than 9,000 people and details set out to shareholders, who will be asked to approve the deal in the summer, reveal the scale of the cuts likely to be felt by the workforce over a three-year integration period.

It said: “At this time it is estimated that the integration and restructuring will result in a phased reduction of approximately 800 roles.”

The prospectus said some of the savings would come from natural turnover of employees while other steps would be taken “to minimise the number of compulsory redundancies”.

It also revealed that the combined group would be renamed Standard Life Aberdeen – with headquarters in Scotland and the company continuing to have offices around the world.

The merger will create the UK’s biggest standalone fund manager, overseeing roughly £660bn of assets.

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