Legal & General plans to cut around 1,000 jobs as restructuring accelerates

Yesterday 20:15

By: Azzat Manal

Legal & General plans to cut around 1,000 jobs as restructuring accelerates

British insurance and financial services group Legal & General plans to reduce its workforce by around 1,000 positions by the middle of 2027, as Chief Executive António Simões pushes ahead with a broader effort to simplify the organisation and improve operational efficiency. The planned reduction represents roughly 10% of the group's workforce.

The company has begun a voluntary redundancy programme for employees in the United Kingdom. Depending on how many workers take up the offer, Legal & General has indicated that compulsory redundancies could follow as part of the restructuring process.

The workforce reduction does not include Legal & General Investment Management, the group's asset management arm, which manages a large portfolio of assets and has already undergone a separate restructuring programme. The exclusion reflects the fact that the division has been subject to its own transformation efforts.

The latest move is part of Simões' wider strategy since he became group chief executive in January 2024. Under his leadership, Legal & General has sought to become a more focused organisation by simplifying its structure, reviewing businesses and strengthening its core activities.

The company says the restructuring is intended to ensure that its operating model better reflects the businesses it is developing and the changing demands of the financial services sector. The strategy includes reallocating resources toward areas where Legal & General sees longer-term growth opportunities.

The workforce announcement comes as the group continues to report progress on its broader transformation. In its 2026 half-year results, Legal & General said core operating profit had increased by 7%, while core operating earnings per share rose 11% in the first half of the year. The group also said it was making progress toward a £1.2 billion share buyback programme.

The company has also been reshaping its portfolio in recent years, including the disposal of selected assets and businesses as part of efforts to concentrate on its main areas of activity. Simões has linked the transformation to improving efficiency while maintaining investment in businesses with stronger long-term prospects.

Legal & General's restructuring reflects wider pressure across financial services, where firms are seeking to control costs, simplify operations and adapt to changing customer expectations, technology and competitive conditions. For employees, however, the planned reduction means that the voluntary programme could be followed by compulsory job losses if the targeted reduction is not achieved.

The group has not announced that all of the planned positions will disappear through compulsory redundancies. The final impact on employees will depend in part on participation in the voluntary departure programme and the company's implementation of its restructuring plans.