Aviva to cut hundreds of jobs in Manchester area as part of cost-cutting plan

 
Joe Hall
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Aviva is shutting down three offices in Salford, Stretford and Salisbury (Source: Getty)

Aviva will cut hundreds of jobs in the Manchester area over the next 18 months as it closes offices in Stretford and Salford.

Following the £5.6bn takeover of rival Friends Life, the insurer has embarked on a cost-cutting plan to deliver £225m in savings to its business by the end of 2017.

On top of the office closures, Aviva concedes there will also be a "reduced presence" presence in Manchester city centre where it will run a specialist site. Over 700 people are currently employed across the three Manchester locations.

Aviva said it appreciated it was providing "difficult and disappointing news" to many employees but wanted to inform them about any changes as soon as possible. As part of the changes, which Aviva hopes to complete by the end of next year, the firm will look to redeploy workers where possible.

Read more: Insurance giant Aviva to slim down with sale of property debt

In a statement a spokesperson explained:

We have previously said that we expect to deliver approximately £225m of annual savings by the end of 2017 as a result of the Friends Life acquisition. Savings are expected to come from a number of areas, including simplifying the business and reducing property costs.

Any role reductions which may occur as a result of Aviva's integration with Friends Life will form part of the potential reduction of 1,500 roles we announced in January 2015.

Aviva's share price fell over one per cent on Monday following the announcement. On top of the slimming down process, Aviva is said to be working with auditor Deloitte to selling off around £2.5bn worth of property loans.

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