Nearly 2,000 job losses at Norwich Union
Aviva slashes 1,800 Norwich Union jobs
Friday, 06 Jun 2008 11:33
Aviva has announced up to 1,800 job cuts at Norwich Union as part of plans increase efficiency across the business.
The company said 22 offices out of the current 52 will be affected by the changes. Union bosses attacked the proposed cuts as "brutal".
Igal Mayer, chief executive of Norwich Union Insurance, said: "What we are announcing today represents significant operational change but I am convinced we are on the right course and that we have the best people working on delivering the right products and processes to service our customers and partners well."
Aviva said that after a number of mergers, Norwich Union was left with too many products, processes, systems and locations, making efficiency difficult.
The insurer plans to open seven new centres based in Norwich, Perth, Bishopbriggs, Stretford, Manchester, Leicester and Southend, which will manage customer services, sales claims and back office administration.
In some cases specific buildings will close, with staff moving into smaller accommodation in the same towns and cities.
Over the next two years, Aviva is set to withdraw from centres at Dundee, Glasgow City Centre, Leeds, Sheffield, Liverpool, Cheadle, Birmingham, Bristol, Southampton, Basildon, Ipswich, Exeter and Worthing.
Graham Goddard, deputy general secretary for trade union Unite, said: "Unite is angry today to learn that Aviva is to cut 1,800 jobs across the country.
"Aviva general insurance is rapidly withdrawing their commitment to local communities and isolating themselves in a small number of cities. The suggestion that employees will be able to relocate appears to be inconceivable for most of those affected.
"The union now has serious questions about how Aviva will be able to deliver on their commitment to 'One Aviva Twice the Value' with one more round of brutal job cuts."
Aviva said it would provide as much support as possible to employees affected by the changes. Norwich Union staff may transfer roles from one site to another nearby and some employees will be asked to move to the new 'centres of excellence', Aviva said.
Sarah Routledge