UNION bosses reacted with anger and political leaders with sadness after one of York’s biggest employers announced major job cuts.
Insurance giant Aviva , which employs about 3,000 people in York and 18,500 nationwide, announced yesterday it was cutting up to 800 jobs from its UK bases, about 4.3 per cent of the total.
If the cuts are split equally across the country, York would lose about 130 posts.
Aviva said the cuts were part of an ongoing operation called Project Simplify, aimed at streamlining the business by £400 million by 2014, but a union leader called the decision “totally unacceptable” and York’s council leader vowed to work to support staff made redundant.
The Press understands the job cuts will focus mainly on middle-management and below.
About 30 per cent of staff in the UK life and pensions department would take part in the redundancy selection process, with about four per cent being made redundant.
An Aviva spokeswoman said: “It’s all areas of the organisation, but it is not our intention to focus on customer-facing staff.
“The vast majority of our employees will be placed into roles with little change.
“Up to 800 roles could be at risk, although in practice it will be fewer than this, because of natural turnover, voluntary redundancies and redeployment opportunities.”
Employees were briefed on the changes this week.
David Fleming, national officer for the Unite union, said Aviva’s failure to announce the total number of job cuts was “absolutely appalling”.
He said:”It is time for the company to come clean on the numbers.
“Our members face being asked to pay the price of boardroom failure and Unite is dismayed that what started out as a shareholders’ revolt on executive pay will result in a jobs cull. This is totally unacceptable.”
City of York Council leader James Alexander said: “The council has a good relationship with Aviva and I discussed the situation with senior Aviva staff recently, expressing concern at a situation where a major local employer is having to lay off staff in significant numbers.
“The news of these job losses is extremely sad for those involved, but we will support those made redundant through Future Prospects to get back into work as soon as possible.”
Aviva recently announced a ten per cent drop in half-year operating profits to £935 million, reflecting restructuring costs and lower returns from its life and pensions operations in the Eurozone.
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