Aviva cuts 2000 jobs in cost-cutting drive

INSURANCE giant Aviva yesterday unveiled plans to cut around 2,000 jobs in the UK and overseas as part of its efforts to slash its costs by more than £400 million.

It is not yet known where the cuts – which represent around 6 per cent of the company’s 31,200 workforce in the UK, Europe and Asia – will take place. Aviva employs 18,000 staff in the UK, including 2,500 at Perth and Bishopbriggs.

The Norwich-based insurance group also announced that, from next year, redundancy pay in the UK will be halved from four weeks per year of service to two.

Aviva’s chief executive Mark Wilson, said: “I know this is difficult news for our employees but these changes are essential if we are to remain competitive.”

He said the group needed to become a “more efficient and agile organisation”.

Wilson added: “We must take tough decisions on costs to provide our customers with great value products and ensure our future success. I am determined that Aviva gets through this phase of our business transformation as quickly as possible.”

Aviva said the job reductions were part of a programme to reduce costs across the business, including “substantial non-people related savings”.

Following talks with employee forums and trade union Unite, Aviva said the changes to redundancy terms will be implemented in two phases so that those affected in the next six months will still receive the current four weeks’ redundancy pay for each year of service.