Aviva Axe 950 Jobs

It has been confirmed that insurance giant Aviva will cut its Irish work force in half over the next two years and outsource a further 300 staff.

This will amount to 950 redundancies in total- with the losses being described as necessary to make "a stronger, leaner business"- they are expected to take effect from next March.

Igal Mayer, Chief Executive of Aviva Europe, said its costs in Ireland have to be reduced to protect the long-term future of the company.

"In Ireland, we must improve our competitiveness to ensure we continue to provide customers with attractive products, good value and excellent service," he said.

A series of mid morning meetings have been held in Aviva centres in Galway, Dublin and Cork to brief staff on the redundancies and the plans put in place.

It is understood no jobs will be lost before March 2012 and that full implementation of the redundancy programme could take up to two years.

There is also speculation a further 300 staff will be outsourced. It is not known where the staff will be outsourced from or to.

Union leaders from Unite are to open talks on the plan, confirmed by management after months of rumour and speculation that Aviva was planning a huge restructuring. The Union said the news is "very worrying".

Meanwhile the Jobs Minister Richard Bruton has said: "It's a concern and I feel for the workers who are directly involved in the uncertainty."

Aviva currently employs over 2,000 staff in Ireland.

(LB/CD)