Aviva has announced its intention to cut 6% of its worldwide workforce, amounting to around 2,000 jobs.
The insurance firm also announced that redundancy packages would be changed for UK staff: payouts would drop from four weeks’ pay for each year of service to two. Pay would be capped at 78 weeks, down from 104.
Lay-offs come as part of an attempt to reduce costs by more than £400 million, following Aviva’s £3 million annual loss in 2012. Aviva cut 2,500 jobs last year, and has so far showed savings of £275 million.
Mark Wilson, group chief executive officer stated: ‘I know this is difficult news for our employees, but these changes are essential if we are to remain competitive.
‘Aviva needs to become a more efficient and agile organisation to unlock its potential.’
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