Aviva set to cut 2,000 jobs worldwide, but no plans for more Irish cutsThursday 18 April 2013 13.08
Insurance giant Aviva is planning to axe around 2,000 jobs from its UK, European and Asian workforce under cost-cutting plans.
However, a spokesperson for Aviva's Irish operation said they were already working through a very substantial transformation programme involving over 500 redundancies.
The spokesperson said that there were no new plans for Ireland. She said the transformation programme should be substantially complete by the end of the year.
However, the spokesperson said that was not to say that Aviva would not be looking for opportunities to make efficiencies in Ireland.
She also confirmed that the reduction in redundancy terms from four weeks per year of service to two weeks per year of service would not apply to the Irish operation.
Aviva said the global job reductions were part of a programme to reduce costs across the business, including "substantial non-people related savings."
Earlier, the UK-based insurance group said that from next year, redundancy pay in the UK will be halved from four weeks per year of service to two.
The company has previously announced it planned to reduce costs by more than £400m sterling.
In a statement today it said: "Aviva has also communicated today that it has reviewed its employment policies and practices to ensure that they are effective and competitive in today's market environment''.
"As a result, Aviva has decided to introduce a revised redundancy policy for all employees on UK contracts. This will bring Aviva's redundancy terms in line with market practice in the UK which will remain significantly above the statutory provisions,'' it added.
"I know this is difficult news for our employees but these changes are essential if we are to remain competitive,'' commented the company's group chief executive Mark Wilson.
"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,'' he added.