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Royal London plans IT outsourcing shake-up as staff brace for redundancies
Royal London is preparing to cut hundreds of IT jobs and outsource a substantial part of its technology operations to IBM, with redundancies reportedly expected by the end of December. The move matters because it could shift technology work to India while leaving employees concerned about losing jobs, expertise and the company’s direction.
The exact number of UK roles at risk and whether work will move to India remain unclear. Royal London confirmed IBM’s appointment as its strategic technology infrastructure partner, saying it would remain accountable for service delivery and regulatory requirements. The reported cuts follow a 13 per cent rise in adjusted operating profit to £187 million in the first half of 2026; the customer-owned insurer also distributed £199 million to eligible customers through ProfitShare in April.
In short
- Royal London is planning IT job cuts under an outsourcing deal with IBM.
- Redundancies are reportedly expected by the end of December.
- The insurer’s first-half operating profit rose 13 per cent to £187 million.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Royal London could argue that partnering with IBM will give it access to specialist technology and infrastructure, improve efficiency and help it focus resources on serving customers. If some work moves overseas, that may be part of a broader effort to manage costs and modernise operations, while the company says it will retain accountability for service delivery and regulatory obligations.
The case against
Employees and their representatives could argue that cutting hundreds of IT roles risks livelihoods, weakens institutional knowledge and disrupts services, especially if work is transferred overseas. They may also question the timing and fairness of redundancies at a customer-owned insurer that has reported higher profits and made substantial ProfitShare distributions, and seek clarity about the scale and consequences of the changes.