Aviva to cut jobs after RAC buy
Wednesday, 9 March 2005Britain's biggest insurer Aviva is to cut about 1,700 jobs in the UK as a result of its agreed £1.1 billion takeover of motor services company RAC.
Aviva will cut 900 head office jobs and move 800 administration and processing jobs outside the UK, the company said in a statement.
The jobs will be from both Aviva and RAC, the company said, adding that it would try to avoid compulsory redundancies.
The proposed deal, which has the backing of the RAC board, came after a day of speculation that a bid was in the pipeline for the 108-year-old business.
Although it is traditionally known for its roadside recovery service, the RAC's portfolio of businesses ranges from the BSM driving school to travel insurance and financial services.
Today's deal was announced as Aviva said worldwide operating profits rose 25% to £2.34 billion in 2004.
