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Norwich Union cuts 4,000 UK jobs | |
(20 minutes later) | |
The UK's biggest insurer, Aviva, has unveiled plans to cut 4,000 jobs at its Norwich Union business by 2008 as it seeks to cut costs. | |
Aviva said that about half of the job reductions would come through compulsory redundancies. | |
It added that that up to 1,000 jobs would be shifted to India, and another 500 IT posts would be outsourced. | It added that that up to 1,000 jobs would be shifted to India, and another 500 IT posts would be outsourced. |
Workers' union Amicus called the move disappointing and said its view on the cuts was one of "extreme anger". | |
Tough choices | |
David Fleming of Amicus said that the union had "a zero tolerance of off-shoring jobs leading to compulsory redundancies". | |
Consumers, independent financial advisers and brokers are increasingly operating in a self-service world Patrick Snowball, Norwich Union executive chairman See Aviva's share price | |
Aviva said the offshoring was part of earlier-announced plans to move 7,800 jobs overseas by the end of next year. | |
The company said it would look to "minimise the number of compulsory redundancies", but added that it needed to make difficult decisions if it wanted to safeguard future profitability and its industry position. | |
Aviva said that while it would be shutting some offices in cities such as Belfast, Glasgow, Stevenage, Norwich and Cambridge, it would not completely shut down operations in those locations. | |
Staff affected by the latest job cuts would be offered retraining and the chance to move within the company, a spokeswoman explained. | Staff affected by the latest job cuts would be offered retraining and the chance to move within the company, a spokeswoman explained. |
Patrick Snowball, the executive chairman of Norwich Union, said that changes in consumer habits meant that the company was operating in an "increasingly competitive and dynamic environment". | Patrick Snowball, the executive chairman of Norwich Union, said that changes in consumer habits meant that the company was operating in an "increasingly competitive and dynamic environment". |
"Consumers, independent financial advisers and brokers are increasingly operating in a self-service world," he said. | "Consumers, independent financial advisers and brokers are increasingly operating in a self-service world," he said. |