Aviva to trim 4,000 Norwich Union jobs

Aviva to trim 4,000 Norwich Union jobs

	Published : Thu, 14 Sep 2006 09:30 By : Richard Owen Print this Story

LONDON - Aviva PLC today revealed that its UK division Norwich Union would be downsizing 4,000 jobs in a bid to deliver cost savings of about £250 million in 2008. Aviva currently has 36,000 employees in the UK. This workforce would be trimmed by about 4,000 till 2008, the insurer announced.

Aviva said about 1,000 jobs would be moved to India while another 500 IT posts would be outsourced. Last month Richard Harvey, chief executive of Aviva had revealed that changes to its workforce were imminent. “We believe that there is much to gain in the UK from closer working practices and a more integrated management approach to our life and general insurance businesses,” he said.

Aviva said in a statement to the stock market that the jobs reduction would prevent duplication in marketing, human resources, finance and IT. "The company will seek to minimize the number of compulsory redundancies through natural staff turnover and voluntary measures," Aviva said.
This move follows a change in the way customers buy insurance with the Internet assuming more importance.

"We have to ensure that Norwich Union remains a highly efficient and effective company in what is an increasingly competitive and dynamic environment," Norwich Union chief executive Patrick Snowball said. "Customers' buying habits are changing rapidly as technology becomes more accessible. Already half our new direct motor insurance policies are purchased over the internet."

The market practices had changed to a "self-service world" Snowball said. "The integration and efficiency measures we are announcing today are part of a programme which will result in an increase in customer focus across our UK businesses along with better and more efficient use of technology."

The staff that is affected by this move to downsize will be offered a chance to retrain and move within the company, Aviva said.