UP to 125 jobs are to be lost at Southampton life insurance giant Skandia, one of the city's principal employers and main sponsor to the Cowes Week sailing spectacular.

The move comes in the wake of declining stock markets, but company chiefs are hoping that many of the jobs will disappear through staff opting to take voluntary redundancy.

They have spelt out the implications of the redundancy packages on the company's internal internet site and even included a calculator to help staff work out the incentives.

Human Resources director Mark O'Connell said the first jobs would be likely to disappear at the end of July and the job cuts would be throughout the company.

He said the company had been actively managing its costs and had been forced into taking action after three successive years of declining stock markets. Its main insurance business is closely linked to equity investments.

The job cuts account for about seven per cent of the company's Southampton head office workforce of 2,400.

Mr O'Connell said: "It's unfortunate we have to do this.''

News of the job losses were broken to staff at briefing sessions at the Southampton offices.