Staff 'devastated' as Norwich Union warns of 1,800 job losses


Norwich Union

Redundancies: 1,800 Norwich Union employees are set to lose their jobs over the next two years

Norwich Union owner Aviva warned   today that up to 1,800 people could lose their jobs due to 'restructuring' of the company over the next two years.

The company plans to merge its Norwich Union Insurance (NUI) offices into seven centres.

A total of 22 offices will be affected, with some buildings due to close and staff moved into smaller accommodation in the same towns and cities.

This will happen over the next two years and could result in between 1,500 and 1,800 redundancies by the end of 2010.

Graham Goddard, Unite deputy general secretary, said: 'This news for staff that their jobs are now in jeopardy is truly devastating.

'The Aviva workforce from the general insurance arm now faces uncertainty about their future.'

The company employs 30,000 people in the UK, with around 18,000 staff working in general insurance in 52 towns and cities.

Norwich Union is the UK's largest general insurer, with a market share of about 15 per cent, and a major provider of life, pensions and investment products.

Mr Goddard said union representatives planned to meet management to discuss the changes and ensure that staff were fully supported.

He added: 'Aviva general insurance is rapidly withdrawing their commitment to local communities and isolating themselves in a small number of cities.

'The suggestion that employees will be able to relocate appears to be inconceivable for most of those affected.

'The union now has serious questions about how Aviva will be able to deliver on their commitment to 'One Aviva Twice the Value' with one more round of brutal job cuts.'

Igal Mayer, chief executive of Norwich Union Insurance, said Aviva's NUI operations had become complex after a number of mergers and acquisitions.

He said: ' We want to deliver excellent, consistent and reliable customer service with market-leading efficiency.

'To achieve this we will need to fundamentally simplify our business, consolidating our expertise into seven insurance centres of the future in the UK.

'This is a transformation that will take place over the next two years and will provide our employees with the products, processes and technology to give our customers and business partners excellent service, right the first time, every time.'

The new seven operational offices will be at  Norwich, Perth, Bishopbriggs, Stretford, Manchester, Leicester and Southend.



"This is a transformation that will take place over the next two years and will provide our employees with the products, processes and technology to give our customers and business partners excellent service, right the first time, every time."

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