As the merger between Standard Life (LON:SL) and Aberdeen (LON:ADN) goes ahead, the merger prospectus revealed on Tuesday that the companies plan to lose around 800 jobs.
The two investment giants revealed restructuring plans, which will see off 9 percent of employees in order to “maximise operational efficiencies and cost synergies”.
The prospectus stated: “there will be a need to maximise operational efficiencies and cost synergies” to achieve the expected benefits of the merger.
“At this time it is estimated that the integration and restructuring will result in a phased reduction of approximately 800 roles from the total global headcount of the combined group as at 31 December 2016 of approximately 9,000 over the three-year integration period.
“Synergies will come in part from employee departures arising from natural turnover.
“Other appropriate steps will be taken to minimise the number of compulsory redundancies, including the active management of Standard Life’s and Aberdeen’s recruitment and vacancies.”
The document also highlights brand name – Standard Life Aberdeen – that will have a new board made up equally of Standard Life and Aberdeen directors.
The board’s executive members will be made up of the chief executives, chairman and deputy chairman. It will also include the Standard Life chief investment officer Rod Paris and Aberdeen’s finance director, Bill Rattray.
Standard Life chairman Sir Gerry Grimstone has said the announcement “another important step towards completing the proposed merger” and that the new board has a “strong blend of appropriate skills and knowledge”.
Details of the Standard Life and Aberdeen merger were first reported by Sky News in March. The merging of the companies will lead to the second-biggest fund manager in Europe, with £660 billion under management.
Under the terms of the new deal, Standard Life shareholders will own 66.7 percent of the combined company, while Aberdeen shareholders will own 33.3 percent.