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 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.