Aviva is cutting 1,800 jobs worldwide over the next three years, out of a total workforce of approximately 30,000. This is in a bid to reduce expenses by £300 million (approximately SG$520 million) annually by 2020.
CEO Maurice Tulloch said the job cuts are part of its cost savings initiatives which include lower central costs, savings in contractor and consultant spend, reduction in project expenditure and other efficiencies. The company added that it will ensure redundancies are “kept to a minimum wherever possible”, for example through natural turnover.
When asked if the job cuts will affect the marketing teams in Asia, Aviva’s spokesperson told Marketing that role reductions will happen across the group globally over the next three years and “it is far too early to give further details”.
Currently in Asia, Aviva has offices in Singapore, Indonesia, Hong Kong and China, among others. In Malaysia, Khazanah and Canadian insurer Sun Life Financial bought over Aviva’s insurance joint venture with CIMB Group for approximately SG$597 million in 2013, according to Reuters.
Meanwhile, Tulloch added that Aviva’s life and general insurance businesses in the UK will be managed separately, with the digital direct business integrated into UK General Insurance. Group chief risk officer Angela Darlington has been appointed interim CEO of UK Life, while president and CEO of Aviva Canada Colm Holmes is taking on the role of CEO of General Insurance. According to Aviva, this will enable stronger accountability and greater management focus on the UK’s leading life and general insurance businesses.
Tulloch said this marks the first step in its plan to make Aviva “simpler, more competitive and more commercial”. “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,” he said.
Tulloch said he is also “determined to crack” Aviva’s complexity, an issue which has held back its performance for too long. “Today’s changes will begin to reduce complexity, cost, and duplication, enabling Aviva to be better at serving our customers and delivering stronger results for our shareholders,” he added.
(Read also: Aviva Investors hires marketing head for APAC)
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