28 August 2012
Aviva announces up to 800 new redundancies
Aviva has announced it is to cut as many as 800 more jobs in the near future. Hundreds of professionals in the British insurance industry are facing redundancy in the near future, it has emerged.
Aviva - a company that has more than 36,000 employees across Europe - announced it is to cut as many as 800 jobs across the UK over the course of the coming months and years.
According to the organisation, this round of reductions forms part of its restructuring plans, which are intended to save it around £400 million in costs as it attempts to resist the pressure it is under during the country's ongoing double-dip recession.
The firm is hopeful that a proportion of these redundancies can be made on a voluntary basis in order to limit the number of people losing their job against their will.
In addition, Aviva expects to be able to redeploy some of the affected professionals elsewhere in its business, as well as streamlining its senior management positions and creating a number of new roles.
A spokesperson for the insurance giant commented: "We've previously outlined plans to simplify our business and make it more efficient and agile."
The official went on to say that being as the "vast majority" of its employees will be placed into roles with "little change" from their current position, the actual number of people losing their job is likely to be fewer than the 800 positions at risk.
"We recognise this is a difficult time for employees and will do everything we can to support them as we continue with our consultation process," they added.
However, David Fleming of Unite, a trade union with more than 1.5 million members, has labelled these reductions "totally unacceptable" and stated his body is "dismayed" that an initial shareholders' revolt against executive pay will lead to a jobs cull.
"Our members face being asked to pay the price of boardroom failure," he noted.
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Posted by Francesca Witney.