South African life assurance and investment group Old Mutual is to close its Dublin office next May. The 26 permanent staff have been informed of the company's decision and offered redundancy packages.

The layoffs are part of a company strategy which will result in a further 50 to 60 staff laid off from other locations.

The Dublin office was involved in processing new business applications and supporting the company's off-shore business in Guernsey.

Investment in new technology and business simplification are the reasons for the office's closure, according to Ms Jane Berntsen, marketing and communications manager for the company.

Only two years ago the company announced an expansion of its Dublin offices, with plans to create up to 40 new jobs.