Jobs fear as Egg is being sold

Hundreds of Brierley Hill workers were braced for bad news on jobs today as insurance group Prudential sold its loss-making Egg internet banking arm.

The Pru has sold Egg, which employs 500 people at its IT centre at The Waterfront, to US banking giant Citigroup for £575 million.

Fears for the future of back office and IT jobs at Egg will be heightened by the fact that Citigroup owns its own business services and call-centre operation in India, Citigroup Global Services, employing 9,000 people in Mumbai, Chennai, Delhi and Bangalore.

The Pru has sold Egg a year after taking complete control of the business. It said today that a sale would realise greater value than retaining the operation, which is estimated to have made operating losses of £145 million last year.

In December 2005, the Pru announced it would spend £200 million buying out fellow shareholders - a move which valued the whole of Egg at £973 million.

It took control after a year spent trying to sell its 79 per cent stake. In the summer the Pru said it wanted to slash £150 million from its costs. More than 700 jobs were already being cut to get £40 million savings announced earlier in 2006. Bristol, Belfast and London offices were closing.