LONDON, (Reuters) – British insurer Aviva Plc is to cut 2,000 jobs and slash redundancy payouts in the process, setting up a showdown with the country's biggest trade union as it attempts to cut costs and mollify shareholders after a recent investor revolt.
Chief Executive Mark Wilson said the cuts would equate to around 6 percent of the global workforce over the next six months and reflected the group's commitment to deliver more than 400 million pounds ($609 million) in cost savings by year-end.
Aviva, which employs around 31,200 people, said it would also overhaul its redundancy policy for all employees on UK contracts. From May, pay will be capped at 78 weeks of service and from December, staff will only receive two weeks' pay for each year of service, rather than a current four weeks' pay.
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