Standard Life Aberdeen to axe a number of jobs before 2020

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Standard Life Aberdeen to axe a number of jobs before 2020

Workers at the financial services giant were told on Thursday (10 October) that IT services for the group would be outsourced to US-headquartered IT services company Cognizent, the Edinburgh Evening News reported.

The newspaper originally reported 320 jobs would be cut - as did an earlier version of this story - but Standard Life Aberdeen have now since denied that number.

The investment giant said some 42 contractors and five permanent staff will be made redundant over the next few months, while 27 staff will be transferred to Cognizent.

Hopefully a significant number of full-time employees will be able to transfer to Cognizent"

The company said the cuts were part of a planned three-year transformation of the business following the 2017 merger between Aberdeen Investment and Standard Life. Before the merger, the two firms estimated some 800 jobs would be lost in the process. 

A spokesperson for Standard Life Aberdeen initially told the Edinburgh Evening News: "This was part of the three-year merger process set out in 2017. Hopefully a significant number of full-time employees will be able to transfer to Cognizent and this will improve our technology infrastructure and most importantly, improve the service to our customers." The company did not confirm the exact number of job cuts.

Later in the morning (11 October) Standard Life Aberdeen clarified: "This is part of the overall merger and integration plan set out in 2017. Those 27 colleagues transferring to our strategic IT partner Cognizant will importantly continue to be based in Aberdeen, Edinburgh and London. Contractors who have successfully completed specific projects are not being retained.

"The outsourcing of parts of our IT platforms will ensure we continue to be well placed to continue to deliver for our clients and customers."

This article first appeared on sister publication Professional Adviser.

Earlier this year four members of the firm's distribution team left the business. The group said following last year's sale of Standard Life Assurance to Phoenix, it decided to merge distribution teams.

 

This article was first published by Portfolio Adviser, a sister title to International Investment.

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