Prudential
has announced that it is to cut its entire direct sales force with the loss of
2,000 jobs.
The
company, which has reduced its direct sales team significantly over the last 18
months, says the job cuts will save it £135 million a year.
Prudential
is to invest in its telephone and Internet service to try and secure new sales.
The
present sales force of 1,400 will be replaced by a smaller specialist force of
qualified advisors who will provide a face-to-face financial planning service.
This
team is expected to expand to about 250 and there will also be a 100-strong
operation catering for corporate business clients, small and medium sized
businesses and affinity groups.
John
Elbourne, chief executive of Prudential’s UK operations, commented, “The drive
for lower pricing in the UK means that it is no longer economic for us to
maintain a large salaried face-to-face workforce. Technology is revolutionising
our industry and customers are accessing financial products and financial
advice in different ways.”
Elbourne
said the firm would take steps to minimise the number of reductions through
natural turnover and redeployment.
Ben
Willmott
