Aviva 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.