Insurer insists no business area will be disproportionately affected by UK-wide job cuts

Cuts

Aviva is consulting with 20% of its UK general insurance workforce about potential job losses, Insurance Times understands.

This does not necessarily mean that all 20% of the UK GI employeees undergoing the consultation process will lose their jobs.

Aviva warned staff yesterday that up to 800 jobs across the country - around 4% of the 18,500-strong UK workforce - could be lost as the company looks to cut costs.

The Telegraph reported this morning, citing an internal statement, that 30% of the life and pensions workforce were in the consultation process.

Aviva has not communicated externally exactly where the cuts will fall, and contends that focusing on cuts in individual business areas is misleading.

An Aviva spokeswoman told Insurance Times: “Our aim is that no business area, and that includes life and pensions and GI, will be disproportionately affected.”

The cuts follow Aviva executive chairman John McFarlane’s vow to cut £400m of costs at Aviva by 2014. About half of this is expected to come from reducing the number of management layers.

Aviva has already started stripping out layers of management.

Workers’ union Unite has urged Aviva to “come clean” about the extent of the cuts and  is continuing discussions with the insurer to clarify where the cuts will fall.