Over 400 jobs will be slashed at London Life after its parent company announced Tuesday morning that Great West Life will be cutting 1500 employees across the country.

The exact number of positions being cut in London is 430.

The company says it will reduce its temporary workforce, let some workers retire early and eliminate more jobs through a severance program.

The company expects to lower its annual costs by about $200 million, before taxes, by the end of March 2019.

About two-thirds of the savings will be from the workforce reduction, and the rest primarily from reduced IT spending with some real estate savings.

About 1,000 of the job cuts will happen this year with the remaining 500 positions to be eliminated more gradually throughout 2018 and early 2019

At the same time, the company will continue to hire people who have the required skills.

Among other things, Great-West has updated its GroupNet online portal for health claim submissions and created an app for customers to track retirement savings across financial institutions.

Great-West is also a co-investor in Portage Investments -- which includes the WealthSimple robo-adviser business in its portfolio of financial technology companies.

But Mahon said there's no plan to reduce its commitment to distributing products through various channels, including its network of associated advisers.

To reach its targets, Great-West says will reduce its temporary workforce, offer a voluntary retirement program and a severance program.

The initiative will reduce Great-West's earnings in this year's second quarter by $127 million after taxes, or 13 cents per share.