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Business & Economy

Insurer Aviva reveals plans to cut 1800 jobs in restructure

Insurer Aviva has revealed plans to cut around 1800 jobs as part of measures to save £300 million a year.

The company says changes will be made over the next three years across worldwide operations.

The move comes amid a wider restructure of the firm, which bosses say is “essential to remain competitive.”

Under the proposals, Aviva’s UK life and general insurance businesses will be managed separately.

According to a plan laid out by chief executive Maurice Tulloch, the company, which has an office in York, says it will lower central costs, make savings in contractor and consultant spending and reduce project expenditure.

Further changes will see Angela Darlington take over as interim chief executive of UK Life, and Colm Holmes become chief executive of General Insurance.

“This is the first step in our plan to make Aviva simpler, more competitive and more commercial,” said Maurice.

“We have strong foundations: excellent distribution, world-class insurance expertise, and our balance sheet is robust.

“But there are also clear opportunities to improve. Reducing costs is essential to remain competitive and this means tough decisions and job losses, which I do not take lightly.

“We will do all we can to minimise redundancies and support our people through this.

“These changes will begin to reduce complexity, cost and duplication, enabling us to be better at serving our customers and delivering stronger results for shareholders.”

Aviva is understood to employ 16,000 employees across the UK, with its York office complemented by a number of further sites, which include bases in London, Norwich, Sheffield and Perth.