LONDON (Alliance News) - Legal & General Group PLC, which provides insurance, savings and investment products, on Thursday said it will close its Surrey base in the summer of 2018, as part of a move to lowers costs.
About 1,400 employees are based at Kingswood, where Legal & General first moved during World War II, and employees are able to "follow their roles" to Hove and Cardiff. Trade union Unite and Legal & General have agreed relocation and travel packages. "If Kingswood employees are unable to move, or be redeployed, Unite and Legal & General have agreed severance terms," the group said.
"To keep offering great value for money products to our customers, we need our employees working at fewer and the right locations, so we can drive costs down, and improve customer service," Simon Burke, L&G's group commercial director, said.
"The Kingswood building, for all its history and strengths, is our least adaptable building to changing business demands, and has high rent and running costs. Closing it is not an easy decision to make, but it is the correct one for Legal & General and our customers," Burke added.
The Kingswood roles are proposed to transfer to Hove and Cardiff, and employees are able to "follow their roles". To help facilitate this, Unite and Legal & General have agreed relocation and travel packages. If Kingswood employees are unable to move, or be redeployed, Unite and Legal & General have agreed severance terms.
L&G shares were up 0.4% to 234.7 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Legal & General (LGEN)