2006
(14/03/2006) AXA Sun Life announces cost reduction measures as part of profitable growth strategy
Bristol-based life, pensions and investments company AXA Sun Life has announced cost reduction measures in support of the company's profitable growth strategy. The company is building on revenue growth with a series of process improvements and cost reduction measures.
This follows strong sales performance in 2005 when new business increased by 16%. However, profits remained flat as costs have risen within the business. The new measures announced today will ensure that costs are reduced while allowing the company to maintain strong profitable performance in the extremely competitive financial services marketplace.
As a result of the cost reduction measures there will be up to 350 redundancies during 2006. AXA has been working closely with the staff union, Amicus, and managers' consultation forum representatives for some time to ensure that reductions in headcount are managed wherever possible through a combination of redeployment, retraining, natural attrition and close control of recruitment. A voluntary redundancy scheme will be put in place and every effort will be made to minimise compulsory redundancies.
Chief Executive Paul Evans said: “We have made great strides in growing our business but we must constantly manage our cost-base in the extremely competitive financial services marketplace in which we operate. We are investing in technology and process improvements but, unfortunately, we also have to reduce our staff numbers. We have worked in close partnership with Amicus and managers' forum representatives to minimise the number of redundancies.
“We are introducing a voluntary redundancy scheme and I expect the majority of job losses to be voluntary. We will continue to deal with our people in a sensitive and professional manner.
“Our business is growing strongly and we will ensure that the changes we are making now enhance that growth. The service we provide to customers and financial advisers is vitally important and will not be jeopardised as a result of this. We are streamlining our processes and maintaining strong investment in technology to ensure that AXA continues to offer excellent products and services.”
Amicus Sector Secretary, Hugh Jones Glass says: “Amicus is working with the company throughout this cost reduction program to ensure that the impact on staff is minimised. We are pleased that we have been able to agree a voluntary redundancy program. This and other initiatives should ensure that we achieve this objective.”
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About AXA
AXA is a world leader in financial protection. AXA's operations are diverse with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 120,000 staff and tied agents and, as of 31 December 2005, had € 1,064 billion in assets under management. AXA reported total IFRS revenues of € 72 billion and IFRS underlying earnings of € 3,258 million for the full year 2005. Our previous company performance is not a guide to how we may perform in the future.
AXA ordinary shares are listed on the Paris Stock Exchange; AXA American Depositary Shares (ADSs) are listed on the NYSE under the ticker symbol AXA.