Phoenix told staff in a video call with senior bosses Stephen Percival and Andy Moss on Monday that cuts would be made in the actuarial service team.

It is understood that staff at Phoenix’s Lothian Road building will be worst affected - one source said the building could even be sold in the near future to reduce costs.

However, Phoenix Group has said they are also creating new opportunities in Edinburgh urging that they committed to the city as part of its business plan.

Other teams have claimed they have been told their staff could could be made redundant in 2021, however, Phoenix Group would not detail when further cuts would be made.

One staff member, who did not wish to be named, told The Scotsman: “It is absolutely disgusting the way we have been treated and right before Christmas as well. So many families face uncertainty with a second lockdown and this is the last thing that they need.

“The Lothian Road building will be heavily impacted and is likely to be sold down the line - Finance takes up the whole third floor and will not be there any more, IT has already moved some staff to India and Customer Services is in the process of being outsourced to Diligenta.”

However, a spokesperson from Phoenix Group told Scottish Financial News that none of its employees have or are moving to India. 

Another employee said: “The messaging has been terrible. I had a colleague who has been here for decades in tears as she was worried about finding new employment in a shrinking job market.

“And after telling us that hundreds would be made redundant they then told several of us that we might be the ones who are okay. It is so confusing and so damaging for everyone’s health.

“You put everything into your work and do 60 hour weeks only to be treated like another statistic. This would never have happened if Standard Life Investments still owned us.”

Pheonix Group allegedly blamed the cuts on the inability and uncertainty surrounding when Scottish workers will be able to work face-to-face with clients.

A spokesperson for the Phoenix Group, said: “To support our ambitious growth plans, we are shaping our business around our two Divisions: Open and Heritage.

“We announced some changes this week within the finance team supporting our Heritage Division, and let the team know that regrettably around 60 roles will become redundant across our Wythall and Edinburgh offices from next March as a result of these changes.

“Edinburgh is the growing hub for our Open business, where we are continuing to recruit and create new roles, some of which will be finance related.”

When pushed, the spokesperson did not rule out the significant further redundancies feared by staff. Such redundancy plans were revealed in an announcement issued by the company last year. 

The spokesperson said: “Near the end of last year we announced a strategic partnership with TCS when we embarked on a circa 3 year programme of change. Through our partnership TCS is committed to expand its already significant Scottish presence and establish a further TCS technology and operational service hub in Edinburgh.

“A skilled team of experts from our company and TCS will support the partnership to deliver excellence in customer service. A number of our employees will transfer to TCS by the end of the transformation. While there is a 3 year programme of change, and it is too early to be clear on the future impact, we will be doing everything we can to minimise any compulsory redundancies and the majority of our people will be retained at either Phoenix or TCS. “

Phoenix Group has said that colleagues will be kept informed throughout the process.