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Aviva to cut 2,000 jobs

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Aviva is cutting 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 last week. It is not known how many of the 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 more than £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 during the next six months as a result of last week’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.”

Essential IFA managing director Peter Herd says: “Many large financial companies have cut jobs and I suspect it is getting to the stage where it is having a detrimental effect on customers. 

“If job cuts cause firms to breach their duty of care to customers, the FCA should be ready to step in.”

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  1. Aviva have closed their direct sales channel with effect from 30th june. Thanks RDR for putting another few hundred advisers and support staff on the dole! Who will be next!

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