Almost 500 jobs will be cut in Standard Life’s corporate headquarters. Approximately 600 jobs total are going to be omitted. An internationally recognised business, Standard Life is a long term savings and investment company with headquarters located in Edinburgh.
News of the company’s massive job redundancy comes fittingly on the heels of the RBS Direct Line Insurance announcement.
John Swinney, the SNP Finance Minister, made an effort to down play the cuts, mentioning that other companies, like Tesco are creating jobs in the finance sector of Scotland. The job losses are just a small percentage of what the Fraser of Allender Institute have estimated will be lost this year due to the recession. They have warned, more than 12,000 just within the finance sector will be looking for another job by year’s end.
David Nish, chief executive of Standard Life, commented on the future, saying: “There is a need to both invest for future growth and actively manage our costs to be competitive.
“The decision announced today is part of the journey towards being a more adaptable and flexible organisation. Our people will be provided with the support they need while the group goes through this necessary change.”
Swinney commented on the government role during this difficult time, saying: “This is a very disappointing announcement from Standard Life, and it will be an anxious time for staff and their families.
“Those affected can be assured that the Scottish government will do everything we possibly can to help, and we have already been in contact with the company.”
He also tried to instill hope in the job market, by mentioning new companies exist within the financial sector and Scotland’s insurance and fund management divisions are still performing well.