2006
(06/11/2006) AXA Sun Life Announces Update on Cost Reduction Programme
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 positive revenue growth with a series of process improvements and cost reduction measures.
AXA has now communicated with its staff on the 2007 cost reduction plans. Following consultation and discussions with the Amicus union and the managers' consultation forum, AXA has announced that the programme will include approximately 200 redundancies in 2007. A voluntary redundancy scheme is being launched for staff.
AXA is committed to minimising compulsory redundancies and 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.
Chief Operating Officer David Hynam said:
"We are investing in streamlined processes to improve our service. Unfortunately we also have to reduce our staff numbers in order to control our costs".
"I expect that the majority of the job losses will come through voluntary redundancy, redeployment elsewhere within the business, natural attrition and close control of recruitment. We shall continue to work with our employees in a sensitive way".
"Our business continues to perform strongly and sales for the first half of 2006 increased by 26% on the same period last year1. However, the need to keep a strong focus on our cost base remains a constant challenge"
Amicus Sector Secretary, Hugh Jones Glass says:
"At the start of 2006 we faced a tremendous challenge. However, what has been achieved has proven that by working together we can meet the challenge and mitigate redundancies and minimise the impact on employees. The lessons that we have learnt in 2006 should hopefully stand us in good stead to manage the impact on the changes that are required in 2007."
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Notes to Editor
- IFA sales increased by 26% when comparing H1 2006 with H1 2005.
About AXA
AXA UK is part of AXA Group. AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Western Europe , North America and the Asia/Pacific area. AXA had € 1,091 billion in assets under management as of June 30, 2006 , and reported total revenues of € 41 billion and underlying earnings of € 2,090 million for the first half of 2006.
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.