Norwich Union, a life company owned by UK insurer Aviva, is to restructure its business services division, which includes IT, facilities management and business systems. The company says that, while difficult for the staff concerned, the restructuring is necessary to further reduce costs and increase flexibility in response to changing market conditions. By end-2005 it will result in approximately 700 job losses, and a reduction of 250 contract worker positions.
The work currently undertaken by the affected teams, predominantly software development and application support, will be transferred to IT outsourcing companies who have global operations including locations in the UK, elsewhere in Europe, America and India.
Norwich Union says it will do all that it can to find opportunities for the re-deployment of staff affected by the changes to alternative roles, but that the company expects the majority of the job losses will be compulsory. Norwich Union has set aside 1 million to provide career advice and support for the staff affected by these changes.