Aviva set to cut 2,000 jobs worldwide

Aviva sign displaying logo Aviva has not yet finalised the number of UK job losses

Related Stories

Insurer Aviva has revealed plans to cut 6% of the company's workforce worldwide over the next six months.

The cost-cutting move will see about 2,000 people in the UK, Europe and Asia lose their jobs.

The company will consult with unions and staff before the number of job losses in the UK is finalised.

Altered redundancy packages for UK staff were also announced. From May this year, redundancy pay will be capped at 78 weeks, down from 104.

Payouts will also be cut from four weeks' pay for each year of service, to two. However, this change will not kick in until December, after the latest round of redundancies.

Unite, the UK's largest union, reacted angrily to the news.

"Once again, finance staff are being forced to pay the price for boardroom failure," said Unite national officer Dominic Hook. "To cut redundancy pay so drastically when there is deep uncertainty over job security is a callous and disgraceful act."

Aviva said the steps were necessary.

"I know this is difficult news for our employees, but these changes are essential if we are to remain competitive," said Mark Wilson, group chief executive officer. "Aviva needs to become a more efficient and agile organisation to unlock its potential."

The company is attempting to reduce costs by more than £400m. Its financial results released in March showed savings of £275m had already been made.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


  • Woman in swimming pool Green stuff

    The element that makes a familiar smell when mixed with urine


  • People take part in an egg-cracking contest in the village of Mokrin, 120km (75 miles) north of Belgrade, Serbia on 20 April 2014In pictures

    Images from around the world as Christians mark Easter Sunday


  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health


Elsewhere on the BBC

  • ITChild's play

    It's never been easier for small businesses to get their message out to the world

Programmes

  • An aerial shot shows the Olympic Stadium, which is closed for repair works on its roof, in Rio de Janeiro March 28, 2014.Extra Time Watch

    Will Rio be ready in time to host the Olympics in 2016? The IOC president gives his verdict

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.