Insurance giant Aviva is to make 1,800 job cuts across the group over the next three years in a bid to save £300m a year.
Unveiling details of its future strategy today (June 6), the insurer also confirmed it was planning to reshape its business so the general insurance (GI) business is managed separately from the rest of the group.
Chief executive Maurice Tulloch said these plans were the first steps towards making the insurance company "simpler, more competitive and more commercial".
Aviva intends to save £300m per year by 2022 and will make these cost savings through cutting central costs, making savings in contractor and consultant spending, and a reduction in project expenditure.
It will also make 1,800 "role reductions" across the group out of a total workforce of about 30,000.
The company stated that it will ensure that redundancies are kept to a minimum where possible, for example through natural turnover, and has engaged with workers union Unite to continue to consult on specific proposals.
Mr Tulloch said: "Reducing Aviva's costs is essential to remain competitive and this means tough decisions and job losses which I do not take lightly.
"We will do all we can to minimise redundancies and support our people through this."
Following reports last month, Aviva has now confirmed that its life insurance and GI businesses will be managed separately in the UK, reversing a 2017 decision to run the two businesses together.
Aviva at the time told FTAdviser that skill and expertise could be focused more effectively on each area if they were separated.
The company has said that the split will "enable stronger accountability and greater management focus on the UK's leading life and general insurance businesses".
Angela Darlington has been appointed interim chief executive officer of the UK life insurance business and Colm Holmes as chief executive officer of UK GI, subject to regulatory approval.
Mr Tolluch said the company will update investors on future strategy and targets on November 20.
Last week (May 31), LV and Legal & General announced that they were offloading their GI business to German insurance group Allianz.
LV started the process in December 2017 when it sold a 49 per cent stake in its general insurance business to Allianz for £500m with a second stage of the transaction due to take place at the end of 2019 for £213m.
Allianz has now purchased the remaining 30.1 per cent stake for £365m, bringing its total holding to 100 per cent.
Meanwhile, L&G has also sold its GI business to Allianz for £242m.
amy.austin@ft.com
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