Britain's biggest insurer moving jobs to India

Friday, 11 June 2004, 19:30 IST
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LONDON: Aviva, Britain's biggest insurance company, is axing 700 jobs at sites in Norwich, York, Croydon, Bristol and Stevenage - and many of them are scheduled to move to India. Aviva is also reducing the number of contract posts by 250. But a spokesman for the company said none of the firm's 3,000-plus Scottish staff would be affected by the latest workforce reduction. "There will be no impact in Scotland," he said. The spokesman said the move would lead to "significant" savings, but added a figure was unlikely to be given before the firm's next scheduled results announcement. The announcement is the third major job reduction move by London-based Aviva - which manages about 240 billion pounds of investments - since December. "While difficult for the staff concerned, the restructure is necessary to further reduce costs and increase flexibility in response to changing market conditions," the company said. The restructuring will be completed by the end of 2005 and Norwich Union said the work currently undertaken by staff affected by the cuts will be outsourced to other companies. David Fleming, the national secretary at the union Amicus, which represents the bulk of Norwich Union staff, said he would be seeking talks with the company after its latest "devastating" blow to workers. Aviva, which announced operating profits for 2003 of 1.91 billion pounds, said it had set aside one million pounds to give career advice and support for affected staff. Chief executive Gary Withers said: "Decisions that affect staff in this way are never easy to make. "However, recent market conditions in the UK long-term savings market have been tough and we have to ensure that the company continues its drive for efficiency." He added: "We will do everything we can to help and support staff during these challenging times and we will ensure they are kept fully informed throughout this process."
Source: IANS
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