U.K-based insurance company Aviva, which operates in some 16 countries and has over 30,000 workers, has said that it will lay-off nearly two thousand of its global workforce.
According to the company, 1,800 people across the globe will be released in the next three years.
Aviva says the move is aimed at cutting operational costs even as it moves ahead with plans to split its business into two independent operations.
The company has over 16,000 employees in the U.K, with operations in locations like London, Sheffield, Glasgow, York, Bristol, Norwich, Dorking, Perth, and Eastleigh.
It is expected that the insurer’s employees in the U.K. will be stunned by the impending job cuts, a spokesperson of Unite union said on Thursday.
The Unite’s officer for Aviva Andy Case also noted that the extent of the job cuts could affect many other people.
Some of the plans the firm has to help alleviate more agony includes reaching every office in individual countries to address the issue of job cuts. To make savings, the company will try natural turnover and also seek voluntary redundancies so that it achieves its set target of minimizing costs by £300 million each year before 2022.
The business split will affect the life insurance and general insurance businesses of the company they are managed independently.
The new Chief executive of the firm, Maurice Tulloch who took office in March after Mark Wilson the insurer of the company was a bit complex and this had withheld its performance for some time.
The CEO believes plans for the layoffs are the company’s first step as it looks to become “more competitive and more commercial.”
In addition, he said that there were opportunities for improvement. There was a need to cut on Aviva’s costs so that it still remains competitive, and that required making tough decisions. In his view, the company has its employees’ back and they are trying as much as possible to reduce redundancies.