Insurance provider Aviva has announced it will be axing around 2,000 jobs globally and cutting redundancy payouts by half.
The company is consulting unions and staff before determining the exact number of job losses, BBC reported. However, it has been announced redundancy packages have been reduced from 104 weeks to 78.
“I know this is difficult news for our employees, but these changes are essential if we are to remain competitive,” said Mark Wilson, group chief executive officer, said.
Aviva has been hit by spiraling revenues, and have been driving measures to reduce cost by £400m (S$754m).
The Guardian reported Aviva’s chairman John MacFarlane is reviewing a plan “promising savings from the sale or closure of more than a dozen underperforming units across its insurance and asset-management operations”.
Last year, Aviva laid off 3,000 jobs, with about 800 of those affected based within their UK operations. This year, half of the redundancies are expected to be in the UK.
Unite, Britain’s biggest union, has called the job losses a “callous and disgraceful act”.
Dominic Hook, Unite’s national officer, said the union will be providing affected members full support following the job cuts.