British insurer Aviva in the next in line this month to announce job cuts to save costs. The insurer stated that it plans to cut about 1,800 jobs over the next three years as new chief executive Maurice Tulloch looks to slash costs.
Aviva said in a statement that it planned "approximately 1,800 role reductions across the group over the next three years, out of a total workforce of around 30,000".
Savings will also come from scaling back its London headquarters, lower spending on contractors and consultants and reduced digital project spending. Aviva has not decided exactly where the job cuts would fall, and that businesses around the world would be asked to reduce costs. The company employs 30,000 people worldwide.
Through this move, the insurer is looking to cut costs by £300 Mn ($380 Mn) per year by 2022.
"Cost savings will be achieved through lower central costs, savings in contractor and consultant spend, reduction in project expenditure and other efficiencies," Aviva added.
The news of job cuts comes three months after Tulloch took over as the chief executive. At that time in March, Aviva had warned that the company's outlook would be weakened by economic uncertainty surrounding Brexit. As per Tulloch said the jobs reduction announcement was a first step "to make Aviva simpler, more competitive and more commercial".
He added, “Reducing Aviva's costs is essential to remain competitive and this means tough decisions and job losses which I do not take lightly.”
Aviva has 33 million customers and is the biggest general insurer in the UK, serving one in four households. Its international operations include France, Italy, Ireland, Poland, Turkey, Canada, India, and China.
Aviva’s announcement comes a day after another European firm, automaker Volkswagen AG stated it will cut as many as 4,000 general and administrative jobs in Germany, fewer than the previously indicated 7,000 job cuts, while adding at least 2,000 IT positions over the next four years and extending a job guarantee until 2029.