Great-West Lifeco to cut 1,500 jobs over 2 years

Great-West Lifeco says it will cut about 1,500 positions over the next two years in response to changing technology and customer expectations. In its release, the Winnipeg-based company says the cuts are equal to 13% of its workforce in Canada.

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Today’s release says cuts will come from “reducing the temporary workforce” and through “a voluntary retirement program.” Great-West also plans to eliminate positions through a severance program, noting, “These reductions are expected to be partly offset by business growth, as well as natural attrition combined with controlled hiring practices.”

Great-West says the job cuts are part of a transformation of its business that began in November 2016, when it “made the strategic decision to align its Canadian business around group and individual [insurance] customers.” The company also cites “heightened competition” and changing customer needs.

Along with the job cuts, Great-West says it’s also aiming to reduce costs through “real estate consolidation, process improvements and updates to information systems.”

Great-West says it expects to lower its annual costs by about $200 million, before taxes, by the end of March 2019. For now, the company says restructuring costs will be incurred in Q2 2017, reducing its earnings for the quarter by $127 million after tax, or 13 cents per share.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.