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Aviva to cut up to 800 UK jobs

Aviva sign 480

Aviva is to cut up to 800 jobs in the UK as chairman John McFarlane embarks on a £400m global cost-cutting drive.

The job cuts are likely to come from both the general and life insurance arms of the UK operation and are set to be completed by the end of 2012.

The life insurance arm employs 7,000 people, out of the 18,500 in total in the UK.

An Aviva statement says: “The vast majority of our employees will be placed into roles with little change. Up to 800 could be at risk, although in practice it will be fewer than this because of natural turnover.”

The move is aimed at improving the insurers balance sheet and is part of the strategic overhaul implemented since John McFarlane replaced Andrew Moss as executive chairman of the company.

Aviva’s announced a £400m global cost-cutting drive in July as McFarlane outlined plans to slash costs to appease shareholders disappointed by the company’s performance. This included exiting 16 ‘non-core’ businesses across the globe and pulling out of the large-scale bulk annuity market in the UK.

In August, Aviva Investors agreed to sell its £1.2bn sustainable and responsible investment range to Alliance Trust.

Aviva Investors announced plans to cut 160 jobs in January with its London-based European, emerging markets, global and SRI desks affected.


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There are 11 comments at the moment, we would love to hear your opinion too.

  1. …….and no doubt Aviva have contacted their offshore call centre providers, suggesting they ramp up their staffing levels in anticipation.

    Five years from now we’ll probably get another announncement that Aviva is ‘creating’ 800 jobs in the UK………….when their clients and brokers are so sick of the poor service, they vote with their feet.and take their business elsewhere.
    I’m sure the bean counter who signed off on the job shredding will be pocketing a fat bonus, whilst the poor staff will be only pocketing their P45’s.
    The latter have my sympathy.

  2. I only hope the 800 that are being asked to go are the same 800 I’ve had the misfortune to have dealt with over the past eight years….

  3. Sadly I must also agree with some of the forgoing comments. To me AVIVA have often seemed like a bureaucracy rather than a commercial entity.

    However I fear that this is merely symptomatic of the problems facing all the life offices at present and I feel will only get worse.

    The combination of regulation and progress has seen their traditional money earners decimated. They are desperately hoping that Auto Enrolment will be their saviour, but I feel they will be sadly disappointed.

    I wonder if this might serve as a warning to our regulators. Their ever increasing interventions and demands, while I hope have been instigated with reasonably good intentions, have in fact resulted in detriment to the whole industry over which they hold sway.

  4. The Brokers don’t give a toss about the levels of service as long as they are still getting their free skiing trips and “conferences” in Sicily !

  5. I love it when people make comments under anonymous. If you don’t have the nuts to give your name, don’t comment.
    I agree with some of the comments, however feel for 800 staff in the current climate (unlike the above who seems to be pleased 800 people have lost their jobs!)
    All providers have bad points, some of my fellow IFA’s are poor (hence RDR) however difficult to work without each other.

    End of rant.

  6. The below comment by mr anonymous is disgusting. No thought for the 800 staff! have a good weekend Mr anonymous and I hope you or your family do not get affected by the current climate!


    I only hope the 800 that are being asked to go are the same 800 I’ve had the misfortune to have dealt with over the past eight years….

  7. Aviva the company that lost its way in the mire called financial services. The staff losing their jobs must be in utter despair at the lack of coherent management from this organisation over the past few years. Aviva promised so much and has failed to deliver on many of those promises. The intermediary sector is sick to the back teeth of the service Aviva provides and the comment from the guy posting above how he hopes it’s the 800 he’s dealt with may relate his frustration with this organisation but is appalling when you consider this is 800 ordinary working people bearing the brunt of a massive failure on the part of Aviva’s senior management. The investment performance they’re delivering in certain areas is staggeringly bad and way below the rest of the market. How on earth did it all get to this?

  8. I can only say that I have generally been pleased with the service provided by AVIVA.

    Another 800 people’s lives devastated as this government appears hell bent on destroying the UK financial services industry. How many thousands of jobs have gone already, how many more to go ?

  9. As an ex CU life and CGU employee this kind of announcement from a relatively newly apopointed Chairman makes me want to throw up.

    In comes the new hatchet man and virtually the first step along a well worn path is “let’s get rid of 800 staff and let’s spin it by talking about natural wastwage, early retirement etc”. In my time one such gentleman (I use the term loosely) used the phrase “non voluntary redundancy”.

    I also feel for the staff affected – if there are shortcomings it’s largely in my experience lack of training/planning by those at the top. Plus ca change as an international concern like Aviva might say…

  10. Personally I have no axe to grind with Aviva although I dont use them very much other than protection or annuities (but they a rate driven).

    But still sad to hear that more hard times for the poor people touched by the sickle of the grim reaper.

    I should come as no suprise to Cameron and Osbourne that tax revenue is very low when it should be a bumper harvest for them at this time of year !!!

    Talk about selling your combine just before your harvest.

  11. Best thing they can do is to Split up into Norwich Union,General Accident & Commercial Union,would then be hopefully of a size that Staff would know who’s who & accountable for what! Would at least be a chance that Service at 1 of the 3 would be better than now.

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