Edinburgh-based insurance giant Standard Life has announced plans to cut 500 jobs over the next 15 months.

A total of 600 jobs will be phased out, but 100 new posts will be created across the business, resulting in a total loss of 500 jobs.

The company said the move follows structural changes that were announced in June and are part of the company's ongoing transformation programme, which aims to increase its "organisational capability, flexibility and capacity."

It says that of the jobs that are going, around 100 are currently held by contractors and it expected approximately 100 of the job reductions to be achieved through staff leaving the company as they normally would, while a further 24 were existing vacancies that will not be filled.  The jobs are in the company's UK and International businesses and Group Corporate Centre. 

David Nish, Standard Life's chief executive, said: "As we transform Standard Life to deliver its growth ambitions, there is a need to both invest for future growth and actively manage our costs to be competitive.

"The decision announced today is part of the journey towards being a more adaptable and flexible organisation. Our people will be provided with the support they need while the group goes through this necessary change." 

Standard Life says that it will do everything that it can to redeploy the remaining employees and every effort would be made to keep compulsory redundancies to a minimum. It will now enter into a 90-day consultation period with its staff association on the proposed changes.