Prudential, the second biggest British insurance group, on Thursday announced that it might axe 2,000 jobs in the UK and 1,000 jobs in India to reduce costs despite posting a pre-tax net profit of �1.98 billion in 2006."The jobs under review are at Prudential UK's customer services and IT operations in both in the UK and in Mumbai," a spokesman of the company said on Thursday.
He said the savings would come from internal cost-savings as well as the offshoring and outsourcing of more jobs.
Prudential, which announced a pre-tax operating profit of �1.98 billion for 2006, said that it would focus on areas such as annuities and is buying Equitable Life's with-profits annuity portfolio.
The Pru's life and pension business employs about 6,000 people, including 2,400 in Stirling and 1,900 in Reading in the UK.
The company also confirmed that it is considering a redistribution of its inherited estate, which is the extra money built up in its with-profits fund, once it has met its commitment to policyholders.
The review of its domestic business was launched after Prudential fought off a merger approach from rival Aviva.
"We are looking at the work of 3,000 people and the importance of the work of those 3,000 people we have yet to determine," said Nick Prettejohn, chief executive of Prudential UK.
"Whether our cost savings come from more off-shoring or more outsourcing we have yet to determine." Prudential's purchase of Equitable Life's with-profits annuity portfolio will affect about 50,000 policyholders.
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