Aviva Announce Job Cuts

Aviva has announced up to 1,800 job cuts by 2010 as part of the company's pending transformation.

Aviva says that the operation function of its general insurance business Norwich Union Insurance (NUI) has "become complex, with too many products, processes, systems and locations" which makes it "difficult to give true service excellence to customers and business partners".

Over the next two years as the transformation programme is implemented, there will be "significant changes" for some of the sites in which the NUI has offices.

Work currently being carried out across widespread locations will be brought together in the seven new centres of excellence based in Norwich, Perth, Bishopbriggs, Streford, Manchester, Leicester and Southend.

Unite the Union has reacted angrily to the news and says that the pending job cuts are "truly devastating".

Graham Goddard, Unite Deputy General Secretary said: "The business changes announced today will impact some 22 locations across the country. The Aviva workforce from the general insurance arm now faces uncertainty about their future. Unite the union will now be meeting with management in order to discuss the implications of this news and ensure that staff are fully supported throughout the distressing process.

"The union now has serious questions about how Aviva will be able to deliver on their commitment to 'One Aviva Twice the Value' with one more round of brutal job cuts."

Igal Mayer, Chief Executive of Norwich Union Insurance said: "We are a very strong business that has grown over the years into a complex organisation. We want to deliver excellent, consistent and reliable customer service with market leading efficiency. To achieve this we will need to fundamentally simplify our business, consolidating our expertise into seven insurance centres of the future in the UK.

"This is a transformation that will take place over the next two years and will provide our employees with the products, processes and technology to give our customers and business partners excellent service, right the first time, every time."

Overall, the number of roles within Operations will be reduced, and over the next two years, NUI will be putting plans in place to support its employees impacted by the changes.

Norwich Union Insurance currently has offices in 52 towns and cities in the UK, 22 of which will be affected by the changes.

Aviva claim to be the world's fifth-largest insurance group and the biggest in the UK.

(DS)