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Aviva plans 1,800 ‘role reductions’ in £300m cost cutting drive

Jobs-Ad-Newspaper-Employment-700.pngAviva is looking to cut hundreds of jobs over the next thee years in a bid to save £300m in costs.

The cost savings will be achieved through “lower central costs, savings in contractor and consultant spend, reduction in project expenditure and other efficiencies”, the firm will tell investors later today.

By 2022, the firm is planning 1,800 “role reductions”, around 6 per cent of its total global workforce of 30,000.

The firm notes that it will “look to ensure that redundancies are kept to a minimum wherever possible, for example through natural turnover”, and has been consulting with staff and union Unite over the details of its plans.

Chief executive Maurice Tulloch says: “Today is the first step in our plan to make Aviva simpler, more competitive and more commercial. We have strong foundations: excellent distribution, world class insurance expertise, and our balance sheet is robust.

“But there are also 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.”

Meanwhile, Aviva’s life and general insurance businesses in the UK will be managed separately, the firm has confirmed this morning.

Reports emerged last month that the insurer was weighing up the move. In a presentation to investors today, Aviva will outline its proposals, including how the digital direct business will be integrated into UK general insurance.

The split will “enable stronger accountability and greater management focus”, Aviva says.

Angela Darlington has been appointed interim chief executive of UK life, and Colm Holmes has been appointed chief executive of general insurance.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Neil Liversidge 6th June 2019 at 8:45 am

    Good luck to those who need to find new jobs, and a piece of advice: It took me 24 years of working for other people to realise that in a big company, no matter how good you are, no matter how hard you work, when somebody 200 miles away makes “a strategic decision” you become just as unemployed as the layabouts who couldn’t care less. In a small firm, it’s different. Layabouts can hide in large firms, which is why you find so much dead wood in banks and insurance companies and in every arm of local and national government. In small firms, there’s no place to hide. Slackers don’t survive. The flip side of the coin, however, is that if you’re good at what you do and you put the effort in, then provided your employer is halfway reasonable, you’ll get the recognition due to you, and you’ll get on. So, good luck folks, and if you’ve got the guts and go to get yourself a future, look for small firms that are hiring.

  2. stewart wooles 6th June 2019 at 4:41 pm

    Looks like Mr Tulloch wants to turn the clock back to create a business that looks like the Norwich Union before it was listed. Was it a better business then than it is now?

  3. David Bennett 9th June 2019 at 7:58 am

    But they are creating two new CEO roles.

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