According to the mutual, it will shed around 10 per cent of its 235 strong workforce, with the restructuring aimed at streamlining the business.
It is understood that within the home finance section of the business the roles of business development manager and compliance manager are to be merged. Further more the previous three sales territories of North, South and West are to be reduced to North and South.
James Loader, marketing manager at MGM Assurance, commented: “MGM Home Finance remains at the very heart of the business, mortgages are an integral part of what we do
“We have been setting up o the business but now need to consolidate our position.”
He denied that AR firms and their selling-agents would be disadvantaged by having a smaller workforce.
However a source close to the process claims there was widespread disenchantment over the restructuring and that MGM management received more volunteers for redundancies then it had anticipated.
Commenting on the development Tony Jones, managing director of Pink said: “It is strange that they are reducing staff at this time, it looks like a simple cost cutting exercise to me. We are actually planning further recruitment.”
MGM Home Finance currently has 120 AR firms with 285 selling agents and aims to achieve total of 350 selling agents by January of next year. Loader refused to rule out acquiring rival networks in order to achieve this.
