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Standard Life axes 1,000 jobs as profits soar

22/03/2007

Insurer Standard Life has announced that it plans to cut 1,000 jobs, despite its pre-tax profit rising by 55 per cent.

In its first full-year results since it listed on the FTSE 100 last September, the UK-based insurer revealed profits of £614 million, up 55 per cent on 2005's £395 million; beyond most analysts' expectations.

Standard Life said that the 1,000 jobs would be cut in order to increase its efficiency and lower operating costs.

"There is more we can do to increase the efficiency of our operations and to deliver further earnings growth and higher returns. Today we announce the next phase of our continuous improvement strategy, which will deliver a leaner and fitter Standard Life," said group chief executive Sandy Crombie.

All 1,000 job cuts are expected to happen by 2009 and the firm remains confident that "growth and natural turnover will keep involuntary job losses to a minimum".

Standard Life is a major employer in Edinburgh where it is headquartered. The insurer has about 7,500 employees in the Scottish capital with more than 12,000 workers across the globe.


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