Aviva, a UK multinational insurance company has warned that it will slash approximately 800 jobs in its UK operation, as part of its austerity measure to reduce the cost substantially and bring the life insurer on the track.
The underwriter has planned to axe the employees at its general and life insurance arms of the UK operation, which was termed as "unacceptable" by the employees of the insurer, as reported by the Financial Times.
Aviva operates nearly 70 centers throughout the UK, while its main centers are located in Norwich, York, Perth and near Glasgow.
The underwriter is passing through a transaction period, as it has initiated a number of steps to strengthen the confidence of the shareholders by boosting the company’s business.
Last year, John McFarlane was appointed as the group’s new executive chairman after shareholder threw away the then chairman Andrew Moss, due to bad performance of the insurer.
McFarlane has planned to save more than £400m by reducing the number of employees in various divisions across the globe and the recent announced job axing is a part of this plan.
In the recent round of job cutting program, it is expected that middle managers jobs are at most of risk.
Aviva told the news agency, "The vast majority of our employees will be placed into roles with little change. Up to 800 roles could be at risk, although in practice it will be fewer than this because of natural turnover, voluntary redundancies and redeployment opportunities within Aviva. There will also be some new roles in growth areas."
"We recognise this is a difficult time for employees and will do everything we can to support them as we continue with our consultation process."