Aviva announced on Thursday that it was set to cut roughly 1,800 jobs across the group over the next three years.
Out of the 30,000 staff that the company currently employs, 1,800 jobs will be slashed in an attempt to reduce costs.
The insurance company said that it intends to reduce expenses by £300 million per annum by 2022. Cost savings will be achieved through lower central costs, savings in contractor and consultant spend, reduction in project expenditure and other efficiencies, Aviva announced in a statement.
The company, who warned of the impacts Brexit could have on its business earlier this year, insists that it will keep redundancies to a minimum where possible, such as through natural turnover.
“Today is the first step in our plan to make Aviva simpler, more competitive and more commercial. We have strong foundations: excellent distribution, world class insurance expertise, and our balance sheet is robust,” Maurice Tulloch, Chief Executive Officer, commented on the announcement.
“But there are also clear opportunities to improve. Reducing Aviva’s costs is essential to remain competitive and this means tough decisions and job losses which I do not take lightly. We will do all we can to minimise redundancies and support our people through this.,” the Chief Executive Officer continued.
Aviva’s ex-Chief Executive Mark Wilson left Britain’s biggest insurance company just last year after joining the group in 2013.
The company also added that its year-to-date trading remains broadly consistent with that of the year prior. Its weaker performance in savings and asset management arising from lower investment markets have been partly offset by growth in its international markets.
Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers. It is the leading insurer in the UK as it serves on in every four households.
The company is listed on the London Stock Exchange and it also a member of the FTSE 100 index.
As of 16:00 GMT -4 Wednesday, shares in Aviva plc/adr (OTCMKTS:AVVIY) were trading at -1.77%.
