Deathwatch: Aviva to axe 2,000
Aviva are going to make 2,000 of its staff redundant in the next six months because new chief executive Mark Wilson needs to cut costs and quick. Aviva is also warning that there are likely to be more redundancies and golden handshakes won't be as generous as before.
These job cuts come on the back of thousands of others as the group battle to stay alive.
Wilson said: "I know this is difficult news for our employees but these changes are essential if we are to remain competitive. Aviva needs to become a more efficient and agile organisation to unlock its potential. We must take tough decisions on costs to provide our customers with great value products and ensure our future success. I am determined that Aviva gets through this phase of our business transformation as quickly as possible."
Of course, the unions are furious and Unite's national officer, Dominic Hook, said: "Once again, finance staff are being forced to pay the price for boardroom failure. Aviva has also announced plans to slash redundancy pay, with longer-serving staff losing more than a quarter of their entitlement. To cut redundancy pay so drastically when there is deep uncertainty over job security is a callous and disgraceful act."
"Since the departure of CEO Andrew Moss less than 12 months ago, the UK workforce, which is the backbone of the company, has suffered job cuts, pay freezes and now faces an attack on their redundancy terms, when the company is planning more cuts. Unite will give staff all the support possible to oppose any job losses in the UK and the cuts to redundancy terms."
Aviva is aiming to cut costs by £400m overall as the company stared down a loss of £3bn last year. Phewee.