UK insurer Aviva to cut 1,800 jobs over next 3 years

[LONDON] British insurer Aviva on Thursday said it plans to cut about 1,800 jobs over the next three years as new chief executive Maurice Tulloch looks to slash costs.

Aviva said in a statement that it planned "approximately 1,800 role reductions across the group over the next three years, out of a total workforce of around 30,000".

Aviva is seeking to cut costs by £300 million (S$519.3 million) per year by 2022.

"Cost savings will be achieved through lower central costs, savings in contractor and consultant spend, reduction in project expenditure and other efficiencies," it added.

Coinciding with Mr Tulloch's start as chief executive, Aviva had in March warned that the company's outlook would be weakened by economic uncertainty surrounding Brexit.

In Thursday's statement, Mr Tulloch said the jobs reduction announcement was a first step "to make Aviva simpler, more competitive and more commercial".

He added: "Reducing Aviva's costs is essential to remain competitive and this means tough decisions and job losses which I do not take lightly.

AFP