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Aviva to cut 2,000 jobs

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Aviva is to cut 2,000 jobs across the group in the UK, Europe and Asia as part of a cost cutting drive.

Staff were informed of the move today. It is not known at this stage how many affected roles are UK-based.

The job cuts, which equate to 6 per cent of Aviva’s global workforce, will take place over the next six months.

The company has already made £275m in annual cost savings as part of its target to achieve total cost cuts of over £400m.

Aviva has also announced it is changing its redundancy policy in December from four weeks’ pay for each year of service to two weeks’ pay for each year of service. The policy will also cap redundancy pay at 78 weeks, including payments in lieu of notice, from May.

Affected staff who lose their jobs in the next six months as a result of today’s announcement will still receive the current four weeks’ pay for each year of service.

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

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Paul Whitehouse 18th April 2013 at 1:07 pm

    This is excellent news. Our forthcoming advert almost hit the buffers when there wasn’t enough money to pay me to pretend to be a Welsh sheep farmer. Fortunately this important project can now go ahead.

  2. Nicholas Pleasure 18th April 2013 at 1:29 pm

    I suspect a significant number of those roles will be in the UK with its shrinking financial services market. Like all other financial services companies (but unlike companies in ANY OTHER SECTOR), Aviva is no longer allowed to pay anyone to market its most profitable products. Farce.

  3. Problem – lack of money.
    Solution – cut the ridiculous “hand shakes”, salaries and bonuses for the people supposedly leading the business.

    Lets just hope that the axe falls at the top of the pile as well as the bottom and that management take a hit.

  4. Nothing to do with regulation and associated costs then?

  5. Is it just me or did I miss the part where we get told,

    “these job cuts will not affect the service currently offered by Aviva and in many respects, IFA’s should see a significant improvement in the level of service”

    I’m truly sorry to hear that so many individuals are being kicked out on their ear. Sadly though, for many IFAs, some of them will no doubt pick up jobs with other providers and, here’s the annoying part, continue to offer the worst level of service known to man because they don’t know any better.

    If you think I sound like a disgruntled IFA who has suffered many years of terrible service from Aviva, then got to the top of the class…

  6. ‘Annymous – Truly sorry’, really? Doesn’t sound like it!

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