Top brokerage firm Jardine Lloyd Thompson (JLT) has revealed more than 300 job cuts in one of its businesses as part of a cost-saving and restructuring programme.
In its half-year report released on Tuesday, JLT said “decisive action” has been completed to better align costs with revenues in the group’s UK and Ireland employment benefits business.
The completed action included the introduction of a flatter, more client-centric structure that has resulted in a decrease in headcount by over 300 employees.
The restructuring programme is expected to deliver savings of £9 million in 2016 and £14 million in 2017, JLT said.
The UK and Ireland employment benefits business were among the factors that held back JLT’s overall group performance in the first half of the year.
According to JLT’s report, the £10.2 million restructuring expenses of the employment benefits business – among other exceptional costs – hit the company’s interim results.
In the first six months, underlying pre-tax profit was £89.2m, down 7% compared to the second quarter of 2015.
Other factors that affected JLT’s half-year performance was the £17.2m net investment in JLT USA, a £22 million settlement in a concluded litigation, and a £1.4m loss following the disposal of a business in Indonesia.
The brokerage giant is still satisfied with its half-year results, with group CEO Dominic Burke expecting the company to withstand economic headwinds.
"During the first half of this year we have been encouraged by the level of client wins, which have been as strong as at any time since I became CEO,” Burke said.
“Economic and industry conditions remain challenging; nevertheless we remain confident about the Group's ability to deliver year-on-year financial progress,” he added.
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