Aviva has confirmed it will cut as many as 2,000 jobs worldwide over the next six months – six percent of its workforce.
It is the latest cost reduction move to try to revitalising the British insurer’s flagging fortunes.
Aviva is undergoing a total shake-up after years of spiralling costs, disappointing share price performance and an investor revolt that led to the departure of its former chief executive last year.
The current boss, Mark Wilson said: “I know this is difficult news for our employees but these changes are essential if we are to remain competitive.”
“I am determined that Aviva gets through this phase of our business transformation as quickly as possible,” he added.
Aviva is also overhauling its redundancy policy for all employees on UK contracts. From December, staff will only receive two weeks’ pay for each year of service, rather than a current four weeks’ pay. Pay will also be capped at 78 weeks – the equivalent of 19 and half years, even if someone who is being laid off has worked longer.
Former chief executive Andrew Moss was given a redundancy package totalling 1.75 million pounds when he had to leave in early 2012.
Aviva’s shares fell 61 percent from the time Moss became CEO July 2007.