Standard Life announces 500 job losses

Edinburgh-based insurance and pensions giant Standard Life has today announced 600 job cuts over the next 15 months although the company did confirm that an additional 100 new posts would be created. The vast majority of the job losses, around 480, are expected to come from the company's Edinburgh offices with the remainder spread across the UK as a whole.

Like so many financial companies in the UK, Standard Life has reiterated the fact that the company needs to reduce its cost base for the future and a reduction in headcount is the only way forward. The company is currently in discussions with unions and a 90 day consultation period will soon begin. While there are hopes that a great number of the proposed job cuts will be filled by "natural wastage" there is no doubt that some people will see their contracts terminated.

The loss of nearly 500 jobs in Scotland is yet another blow to the Scottish economy which many believe is the weakest across the UK. Despite significant investment by the ruling SNP party over the last few years it seems that aside from growth in the public sector workforce the challenging economic times are wreaking havoc in the private sector.