Aviva share price up 1.29% after it announced plans to cull 1,800 jobs in £300 million cost-cutting measure
The culled jobs would represent 6% of its 30,000-strong workforce, although Aviva did not specify which markets the job cuts would come from.
United Kingdom (UK) insurance giant Aviva said it plans to cut 1,800 jobs in an effort to scrimp on £300 million of costs a year, the firm’s new chief executive Maurice Tulloch said on Thursday.
The group's shares rose 1.29% or 5.30 pounds, to 415.90 pounds minutes into trading on Thursday, following the latest announcement.
Job cuts
The culled jobs would represent 6% of its 30,000-strong workforce, although Aviva did not specify which markets the job cuts would come from.
Mr Tulloch said he plans to make the insurer ‘simpler’, ‘more competitive’ and ‘more commercial’.
‘Reducing Aviva’s costs is essential to remain competitive and this means tough decisions and job losses which I do not take lightly,’ the chief said.
On Thursday, Mr Tulloch also confirmed plans to split Aviva’s core UK business into two parts – general insurance and life insurance. The firm said this move would improve on accountability and create better management ruling.
Aviva share price lower by 18.9% year-on-year
Shares of the insurer had fallen by 1.72% or 7.20 pounds, to 410.60 pounds, on Wednesday, before the announcement was made.
The group’s share price has fallen by 18.9% over the past 12 months, due to uncertainty over the previously vacant chief executive post and a muted outlook for this year.
Mr Tulloch took the helm in March.
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