TROUBLED insurer Aviva yesterday announced it would sack a further 2,000 staff as it pursues a radical turnaround plan following years of share price decline and an investor revolt.
Six per cent of the company’s 31,000-strong global workforce is expected to leave before October.
Just over half of Aviva’s workers are in the UK, meaning around 1,100 British employees stand to lose their jobs if the cuts fall on a proportionate basis.
“I know this is difficult news for our employees but these changes are essential if we are to remain competitive,” said new chief executive Mark Wilson.
Aviva also announced it intends to halve its UK redundancy terms to two week’s pay for each year of service, raising the prospect that the company is making contingency plans for a further round of cuts.
Yesterday’s redundancies are on top of last year’s 2,500 global job losses. They form part of the company’s plan to save £400m in annual costs by 2014.
Aviva is still suffering from the legacy of former chief executive Andrew Moss, who quit following last May’s shareholder rebellion. Since then the company has sold off underperforming assets and cut the final dividend by 44 per cent.