Canada Life cutting IT jobs

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This article was published 29/02/2024 (598 days ago), so information in it may no longer be current.

Canada Life is cutting IT jobs, opting to outsource work to an India-headquartered technology company.

The insurance behemoth told staff Tuesday it planned to shift work to HCLTech, which it described as a “leading information technology company.”

“With technology and those related skill sets evolving faster than ever, this change becomes critical to help us meet our customers where they are,” a Canada Life executive wrote in an email to staff. The Free Press obtained the memo.

Certain IT operations, including cloud and network operations, will be outsourced. Canada Life expects to “complete the transition” on July 5, the email reads.

Some staff will be let go, while others will be placed in different Canada Life roles. Some will be offered similar positions at HCLTech, according to the Tuesday note.

A Canada Life spokesperson would not say how many jobs will be terminated, or how many people will be offered different placements.

In 2022, Canada Life employed upwards of 11,700 staff, including 3,402 Manitobans. A corporation public accountability statement doesn’t break down how many people work in IT.

“We’ve spoken with those individuals impacted,” the Canada Life spokesperson wrote in a statement. “We will treat our employees with care and respect throughout this transition.”

One staff member said colleagues are “having jitters” over the news.

HCLTech employs more than 224,700 people globally, according to its website. Its services sprawl 60 countries and 10,000 clients.

The company began as a tech startup in 1976; since then, it’s expanded into software services, cybersecurity, cloud and digital operations, and artificial intelligence, among other things.

Canada Life’s decision to do business with HCLTech aligns with others in the insurance industry, the company’s spokesperson wrote.

The choice allows the corporation, which has headquarters in Winnipeg, to “access economies of scale,” the internal email reads.

“We’re confident this shift to managed services for ongoing operations in select areas is the right direction,” Tuesday’s memo relays. “(It’s) aligned with the growth strategy for our business.”

Canada Life will retain and invest in its own employees in other technological areas, its Tuesday email reads.

A source close to the deal said HCLTech committed to creating an office in Winnipeg. HCLTech didn’t immediately respond to questions by print deadline.

Canada Life laid off 85 employees in 2020 upon partnering with IntouchCX, which was then called 24-7 Intouch Solutions, CBC reported at the time.

Canada Life managed $134.1 billion in retirement and other investment holdings for Canadians in 2022, its most recent public accountability statement shows.

gabrielle.piche@winnipegfreepress.com