Savings of £75m realised.
Norwich Union (NU) has warned of more job losses as part of its aggressive cost-cutting strategy, Aviva’s chief executive Andrew Moss has revealed.
Parent company Aviva plans to cut £200m of costs from its UK general insurance business by the end of 2008, by making internal changes under its growth plan, “One Aviva, Twice the Value.”
Aviva will analyse the process of every department to determine whether there are duplications.
So far, cuts made to NU’s IT and marketing departments have seen more than 500 jobs slashed. Changes to the marketing department alone, including the job cuts, resulted in £75m in savings.
Many of the IT jobs cut had been contract positions.
The recent reductions are in addition to 4,000 other job cuts announced last year. A spokeswoman for NU said 2,000 of those positions had already been vacated, mainly through natural wastage and company redeployment. The additional 2,000 would be cut by the end of this year.
NU refused to speculate on the number of job losses saying it is still too early to tell.
A spokeswoman said the cost-savings plan would allow NU to provide better service to brokers by making processes more succinct and efficient.