Jobs to go as Prudential extends cost-cutting plan by outsourcing or offshoring

HR jobs at Prudential are under threat after the insurance firm announced it was looking to cut an extra £80m from its operating costs over the next four years.

Prudential announced a revised cost-cutting target of £195m, up from £115m, in its annual financial results last week. The company said it would achieve this by a combination of slimming down the number of IT systems it uses, and reducing the cost of some staff.

It said that 2,000 systems administration jobs currently undertaken in the UK would be either outsourced, or offshored to its existing facility in Mumbai, India. Once this process had been completed, the use of back-office staff supporting these roles would be under threat.

“Over the next six months, we are looking internally at offshoring work to Mumbai, and we will also discuss with external parties the possibility of outsourcing. Then we will need to look at what shared services are provided and if this is at the right level,” said a spokesman.

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