Aberdeen and Standard Life merger to result in 800 job losses

The proposed merger between Scottish financial firms Aberdeen Asset Management and Standard Life will reduce the combined workforce by 800 jobs.

Aberdeen and Standard Life currently employ around 9,000 people globally, with almost one-tenth of those set to lose their jobs as a result of the deal. In a detailed prospectus of the transaction released by Standard Life late on Tuesday, the firm said it would attempt to minimise the job losses, but that some layoffs were inevitable.

The jobs are expected to be cut over three years as the merger takes shape.

The jobs are expected to be cut over three years

"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,” the prospectus said.

"Synergies will come in part from employee departures arising from natural turnover."

The two financial firms are among the biggest employers in the industry in Scotland, and agreed to the merger in March of this year. The new company will be known as Standard Life Aberdeen plc.

Standard Life was trading 0.31% higher as of 1206 BST, while Aberdeen was up 0.71%.