Openwork confirms redundancies in cost-cutting drive

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Multi-tie mortgage and financial advice network Openwork has made several redundancies, including mortgage relationship manager Karen Hedges, as part of a cost-saving initiative.

The group said a small number of roles have been affected by the review, which will see the network combine some support roles.

Hedges leaves after working for the business for 33 years.

"It was a bit of a shock," she said. "The market is challenging for everyone right now, but networks are all cost-cutting."

Openwork said in a statement: "Our mortgage business will be a major focus for us in the coming years and protection will play a key role in our strategy in that area.

"Combining some of the support functions is a natural progression for the business and will bring significant benefits to Openwork as we move towards profitability.

"The restructure has impacted a small number of roles where overlap would be inevitable and regrettably this has led to Karen's departure."

Openwork recorded pre-tax losses of £8.5m in 2010, on top of a £5.6m loss in 2009.

Openwork's latest adviser numbers decreased from 2,485 to 2,060, with chief executive Mary-Anne McIntyre blaming both the general contraction in the market and the poaching of advisers by a rival network set up by ex-staff.

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