UK – Aviva’s Norwich Union arm is to cut 700 jobs in its life business services division in a bid to cut costs and improve flexibility.

“Norwich Union is to restructure its life business services division, which includes IT, facilities management and business systems,” parent Aviva said. “While difficult for the staff concerned, the restructure is necessary to further reduce costs and increase flexibility in response to changing market conditions.” The restructuring would be completed by the end of 2005.

The move would see 700 jobs go – mostly compulsory - and a reduction of 250 contract worker positions. The work would be outsourced to firms in the UK, elsewhere in Europe, America and India.

"Decisions that affect staff in this way are never easy to make,” said Gary Withers, chief executive of Norwich Union Life. “However, recent market conditions in the UK long-term savings market have been tough and we have to ensure that the company continues its drive for efficiency.

“We will do everything we can to help and support staff during these challenging times and we will ensure they are kept fully informed throughout this process."

Separately, Aviva said its Aviva France subsidiary has sold its 31.4% holding in listed French property company Société Foncière Lyonnaise to Inmobiliaria Colonial for 427 million euros.

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