Prudential Cuts 2,000 Jobs in Sales Overhaul

February 13, 2001

Prudential expects to cut 2,000 sales jobs in Great Britain over the next year in a restructuring of its direct sales force in the UK.

The company is reportedly shifting its focus from a large direct sales force to alternative distribution channels and the current direct sales model of 1,400 consultants would be replaced by a smaller specialist force of 250 advisers providing face-to-face planning for complex financial products.

The staff cuts, which will impact sales support, back office and administration operations, are in addition to 4,000 job losses over three years the company is on track to complete this year.

Prudential, which currently employs 11,500 people in UK insurance operations, expects to incur a restructuring charge equivalent to $159.5 million, of which 13 million will impact directly on shareholders. The rest will be taken out of the life fund.

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