Legal & General (L&G) plans to cut around 1,000 jobs by the middle of 2027, equal to about 10% of its workforce. The UK programme will begin with voluntary redundancies. Compulsory cuts are still possible if too few staff choose to leave. L&G is also consulting unions as the process moves ahead.
The company says the plan is part of a wider effort to make the group simpler and more efficient. Chief Executive António Simões has said that different structures and ways of working built up over time and made L&G more complex than it needed to be.
Why Is L&G Restructuring Now?
The timing matters. L&G is not announcing the cuts after a collapse in its latest results. In August 2026, the group reported a 7% rise in core operating profit and an 11% rise in core operating earnings per share. Fee-related earnings in Asset Management increased by 37%.
That division, which manages about £1.2 trillion of assets, is not part of this job-cut programme because it has already been restructured. L&G is also continuing its plan to return more than £5 billion to shareholders over three years through dividends and share buybacks.
Its pensions business also remains active. By the end of July, L&G had written or was exclusive on £5.7 billion of global pension risk transfer business. Workplace pension net flows were £6.2 billion.
What Does This Mean for UK Finance?
The announcement adds to a wider focus on cost control and simpler business structures in UK financial services. Admiral has also announced plans to cut around 500 roles in its UK insurance business. The reasons are not identical, but both moves show that major finance firms are reviewing staffing and operating costs.
For L&G staff, the key issue is how the consultation and redundancy process develops before mid-2027. For other UK employers, the story is a reminder that workforce cuts need careful legal and financial planning.
What Should UK Employers Know?
Under current rules in Great Britain, collective consultation is required when an employer proposes 20 or more redundancies at one establishment within 90 days. For 20 to 99 proposed redundancies, consultation must begin at least 30 days before the first dismissal. For 100 or more, the minimum is 45 days.
Ignoring these duties can be costly. Employers may face tribunal claims if they fail to consult properly. They must also notify the Redundancy Payments Service when the collective rules apply. Since 6 April 2026, the maximum protective award for failing to meet collective consultation duties has increased to 180 days’ pay per affected employee.
What Should Businesses Do Now?
Employers considering restructuring should first review payroll costs, cash flow, redundancy liabilities and the tax treatment of termination payments. They should also test different staffing options before making final decisions.
The L&G case shows why restructuring should be planned early, not rushed when pressure becomes severe. Clear numbers help owners understand what they can afford and what risks need to be managed.
How Lanop Can Help
Lanop Business & Tax Advisors supports UK businesses with payroll, cash-flow forecasting, tax planning and Virtual Finance Director services. This helps owners review the financial effect of workforce changes before they act.
With large financial firms reviewing costs and structures, smaller businesses should also base major staffing decisions on current figures, not guesswork. Lanop can help employers understand the numbers, plan cash needs, and keep payroll and tax planning clear during periods of change. So, contact Lanop now to get a free consultation with one of our international tax advisors.
