Friends First announces restructuring and closure of Friends First finance
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Friends First has today announced that due to significant changes in the external marketplace, the company intends to restructure its operations in line with the new challenges faced by the business. The restructuring will ensure a long term, viable and profitable business, capable of meeting customer needs and sustaining employment.
Following a detailed review, Friends First intends that its total workforce will be reduced by 147 people from the current level of 540 people.
The majority of jobs will be lost as a result of the closure of the Group’s asset finance division, Friends First Finance. Friends First Finance has been significantly impacted by the global credit crunch and its business model of borrowing from the inter-bank market is no longer sustainable in the current climate. The closure of Friends First Finance will unfortunately result in the loss of 98 jobs on a phased basis as the business is wound up over the next 5-7 years.
The company is also reorganising the wider Friends First business to address the new realities of the Life & Pensions market which has seen a decline in new business volumes of about 40% during 2009. The company’s strategy of building long term and durable relationships with key independent brokers requires a smaller, more focused workforce to meet the new market challenges. The company is seeking to reduce the remaining workforce by 49 people during 2009 through a programme of voluntary redundancies. A new career break programme has also been introduced.
Commenting on the announcement, Mr Adrian Hegarty, Group Chief Executive Friends First, said: “It has been a difficult decision to reduce our workforce across the Friends First Group. The closure of Friends First Finance is a necessary decision because of the lack of availability of credit, at appropriate rates, combined with the downturn in the Irish economy. These factors have undermined the business significantly. It is with deep regret that we’ve reached this decision as Friends First Finance was a successful business for the past 12 years, run by a dedicated and skilled workforce.
“The decision to reduce the workforce across the rest of the business reflects the changing face and reduction in size of the life and pensions sector and we must respond by reorganising our business to meet the challenges of the new marketplace. I am confident that the steps we are taking, where we will focus and develop our core business of protection and investment activities, will mean that Friends First can perform profitably and successfully and provide long term secure employment into the future. Friends First remains an integral part of the Eureko group, and by taking these difficult but necessary measures and with the ongoing support of our parent, we are ensuring Friends First is well placed to prosper in the years ahead. ”
Friends First is a leading provider of pensions and investment products in the Irish market and will continue to employ approximately 390 people at its corporate headquarters in Dublin and regional offices in Cork and Galway.
Ends 27th August 2009
For further information:
Murray Consultants 01 4980300
Grainne O’Brien 087 2610862
Louise Cassidy 086 3835727
About Friends First
Friends First is one of the leading financial services groups in the Irish market, providing a range of personal and corporate financial products including pensions, investments and savings. Friends First has offices in Dublin, Galway and Cork. The Group’s total assets exceed €4 billion*. Friends First is part of Eureko B.V. which is one of the largest insurance groups in Europe with a total asset base of €92 billion** and over 20,000 employees in 10 countries.
* Source: Friends First – figures as at 31st December 2008
** Source: Eureko B.V. figures as at 31st December 2008