FINANCE giant Skandia has quashed speculation it's preparing to quit Southampton by pledging its future to the city.

The firm has also confirmed it is to stay in its landmark Southampton headquarters Skandia House.

All 1,400 Southampton staff do face upheaval though, with a major reshuffle across all of the pension and investment specialist's three Southampton offices.

One of the region's biggest employers with 1,400 staff, Skandia had been feared to be weighing up a move elsewhere in the wake of its £4 billion hostile takeover by South Africa's Old Mutual in February.

Plans to axe up to 600 jobs were announced in a cost saving drive soon after the deal, prompting concerns over the extent of changes and that they might follow other high profile firms such as shipbuilder VT out of Southampton.

But bosses have now told the Daily Echo they have always intended to stay. Human resources director Mark O'Connell said: "Southampton is the centre of our UK and offshore division and we are fully committed to keeping it as the focal point of our operation.

"People had speculated that we might go and even though that wasn't right we wanted to wait until we had a property plan before we corrected it. It was never our intention to pull out.

"I can confirm also that we are not leaving Skandia House, it is our flagship building and we intend it to remain so."

However there are major changes, with 600 workers based at its Skandia Point offices in Commercial Road being moved to either Skandia House or Mountbatten House in Grosvenor Square.

The move was prompted by a decision to outsource 250 IT workers to Indian technology giant HCL, which will create space at Skandia House.

The firm already has vacant space in Mountbatten House, a legacy from the days when it employed more than 1,800 people in Southampton. It has been empty for three years since 100 workers were laid off.

The 50,000sq ft space has proved difficult to let, so bosses are moving in their own staff to free up Skandia Point, which is likely to prove more popular with potential tenants.

Each of the offices is also to be refurbished.

"Everyone who works for us in Southampton will be affected," said Mr O'Connell. "Even the managing director will have to move out of his office so we can refurbish it."