Legal & General (LSE:LGEN) plans to reduce its workforce by around 1,000 positions by the middle of 2027 as part of changes to its operating structure, Chief Executive António Simões told employees on Wednesday.
The planned reduction represents approximately 10% of the company’s workforce.
Legal & General said the changes are intended to simplify its operations and support the implementation of its strategy. Simões told employees that the business had become increasingly complex over the previous decade.
“To deliver our strategy successfully, we now need to make sure the way we work reflects the business we are becoming. Across L&G, we need to change how we work today and, through this, become a leaner organisation. By the middle of next year, we expect to reduce the size of our organisation by around 1,000 roles,” Simões said.
Voluntary Programme Planned
Legal & General intends to open a voluntary job reduction programme, although the company has not ruled out compulsory redundancies.
A company spokesperson said the changes would allow Legal & General to direct investment towards areas where management sees opportunities for growth.
The company also plans to consult with unions over the proposed workforce reductions.
Asset Management Division Excluded
Legal & General’s asset management business will not be affected by the planned job cuts after undergoing a restructuring last year.
Asset management is one of the group’s main businesses alongside its life insurance and pension-related operations.
Simões has served as Legal & General’s chief executive since early 2024.
Legal & General shares have risen 13% so far in 2026. The stock has, however, underperformed Aviva (LSE:AV.) and the broader market over recent years, according to the source.
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