Aegon UK has told staff about further developments in its programme to restructure its life and pensions business and reduce operating costs by 25% by end 2011.Some 116 jobs will be axed as a result. Aegon will put in place new structures in the Customer Services and Finance areas as a result of investment in technology and streamlining of operations. The Legal and Sales areas will also be streamlined to reflect the refocus of the business on its two growth markets of ‘At retirement’ and Workplace savings.

The moves will lead to a reduction of 116 roles in the life and pensions business. This includes a reduction of 17 roles in affinity group advice service Aegon Direct. Aegon has decided to close this business and wind it down by the end of the year.

Aegon Direct was launched in October 2009 to provide annuity advice to members of a limited number of affinity group partners. Aegon believes the capital required to run this business unit can be better redeployed in other areas to provide a greater return for shareholders. Aegon Direct will wind down over the next few months, closing by 31 December 2011.

Aegonwill seek to minimise compulsory redundancies where possible and is also seeking to meet its cost saving targets by looking at alternative savings.

Aegon aims to reduce its operating costs by 25% by end 2011 and refocus the business on the two growth markets of ‘At retirement’ and Workplace savings. Aegon had met £58m of the annualised £80m cost saving target by the end of June 2011.

The company is on track to complete the restructure programme and meet its cost saving targets and will give a further update later in the year.

Aegon UK’s chief executive, Adrian Grace said: “All of the decisions we’ve taken over the last 12 months have taken us closer to delivering our restructuring plans and positioning Aegon for success in its chosen markets. We will continue to look at all cost saving opportunities to meet our target by end 2011.

“These are challenging times but we are on track to deliver and ensure Aegon’s future success.”