INSURANCE giant Aviva has announced plans to axe 1,800 jobs over the next three years in a bit to save £300million a year.
That’s 6 per cent of its 30,000-strong global workforce.
1 Aviva has announced plans to ave 1,800 jobs in the next three yearsCredit: Alamy
The jobs cuts affect staff worldwide – not just those in the UK.
But Aviva says it’s too soon to say how many UK roles this will impact or if it’s a particular part of the business that will see the biggest cuts.
Aviva says it’s consulting with trade union Unite on the job losses but adds that it wants to keep redundancies to a minimum “wherever possible”.
The news comes as the insurer says it needs to cut company costs by £300million a year by 2022.
It adds that it will also make savings by slashing the amount it spends on contractors and consultants.
Maurice Tulloch, Aviva’s chief executive officer, says the decision to cut jobs has not been taken lightly.
He said: “There are clear opportunities to improve. Reducing Aviva’s costs is essential to remain competitive and this means tough decisions and job losses which I do not take lightly.
“We will do all we can to minimise redundancies and support our people through this.”
The insurer has also announced plans to split its life and general insurance business in the UK to enable “stronger accountability and greater management focus”.
Aviva provides life insurance, general insurance, health insurance and asset management to 33million customers.
In the UK, one in four households is an Aviva customer.
The insurer’s profits before tax were up 6 per cent in 2018/19 compared to the previous year at £2,129million.
Its share price closed at £4.10 yesterday.
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It’s been a tough year for businesses with many announcing job cuts this year.
Argos revealed just last month that hundreds of jobs were at risk after a shake-up of middle management roles.
While Jaguar Land Rover announced plans to cut 4,500 jobs.
And confectionery firm Fox’s Glacier Mints has revealed merger plans that could see 200 jobs axed and its factory shut down.
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