Transamerica will be reducing its workforce by a combined 800 employees in both its retirement solutions and insurance businesses, company officials said Friday in an interview.
The company employs around 10,000 employees and is owned by Aegon NV, which is based in The Hague, Netherlands.
The reductions, which will start at the end of February and will occur throughout 2017, will result in the closing of three offices in Los Angeles, Folsom, Calif., and West Chester, Ohio, said Jason Crane, Transamerica’s executive director for business development.
Mr. Crane was unable to break down how many of the terminated employees would be in the Transamerica Retirement Solutions retirement record-keeping business, which has $234 billion in assets under administration.
Consolidation has been a major trend among large providers in the record-keeping business. Last year, Transamerica acquired Mercer’s record-keeping business, adding $71 billion in assets under administration.
Mr. Crane did say that none of the staff reductions will occur in Transamerica Asset Management, which has $77.9 billion in assets under management.
Mr. Crane said the reductions would help the company stay competitive in the retirement marketplace and that cost savings would be used to enhance digital platforms. He said new digital options were being developed that would help retirement plan members have a better user experience and combine information on their retirement plan with ways to stay healthy.
“There will be a greater value on the intersection between financial and physical well-being,” he said.