Restructuring at Great-West Lifeco is going to cost hundreds of London Life workers their jobs.
The company, based in Winnipeg, announced on Tuesday it would be cutting 1,500 jobs, or 13% of its Canadian workforce, over the next two years. Among those will be 430 jobs in London, according to the London Free Press.
Tim Oracheski, spokesperson for Great-West Lifeco, confirmed to BlackburnNews.com that around 430 positions will be impacted in London. However, the total number of employees impacted will depend on voluntary attrition and growth in the business.
"These are difficult but necessary decisions that we are not taking lightly,” said Paul Mahon, president and chief executive officer of Great-West Lifeco. “We are committed to treating all those affected fairly and respectfully, consistent with our values.”
The job cuts will come from a reduction of temporary positions, voluntary retirement and buyouts, and layoffs.
Other cost-cutting measures being undertaken by the company include real estate consolidation and updates to information systems.
"Individuals leaving the company as part of [Tuesday's] announcement will receive a competitive severance package and career transition support," said Oracheski.
The insurance giant is restructuring as it moves to install new technology to meet the growing demand for online and smartphone services.
“To ensure we remain competitive and drive future growth, we are reducing costs and becoming more efficient, while at the same time investing more in customer-focused innovations and service offerings," said Mahon. "We are confident these strategic initiatives will have a long-term positive impact for customers, advisors, employees and our shareholders.”
According to a news release, the company anticipates the cuts will translate into annual savings of $200-million, before taxes.
London Life is one of London's largest employers with a workforce of 3,300. It was acquired by Great West in 1997.