As part of its restructuring efforts, Great-West Lifeco announced yesterday that it would cut 1,500 jobs in Canada over the next two years.
The insurance conglomerate said that it intends to trim its workforce by 13%; the company currently has about 12,000 employees in Canada.
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The job cuts will be distributed across the company. CBC reported that Great-West Lifeco’s operations in Winnipeg will shed 450 jobs, while London Life – a subsidiary of Great-West Lifeco in London, Ontario – will see 430 job cuts, The London Free Press noted.
“To ensure we remain competitive and drive future growth, we are reducing costs and becoming more efficient, while at the same time investing more in customer-focused innovations and service offerings,” said Great-West Lifeco president and CEO Paul Mahon.
“We are confident these strategic initiatives will have a long-term positive impact for customers, advisors, employees and our shareholders.”
According to a release, the reductions will come from reducing the temporary workforce, implementing a voluntary retirement program, and eliminating positions via a severance program.
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Great-West Lifeco said it will record a restructuring charge of approximately $215 million in the second quarter in relation to the job cuts. The company also announced that it plans to reduce its costs further through real estate consolidation, process improvements and updates to information systems.
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