900 axed in Norwich Union cutback

INSURER Norwich Union is cutting 900 jobs, citing tough competition in the financial services sector.

The company is axing 600 staff at life and pensions centres in Norwich, Perth and Worthing, and is closing its Cheadle office, near Manchester. NU is also eliminating 300 jobs at other undisclosed locations.

The cutbacks follow a strategic review. 'We operate in an extremely competitive market and have to continually look at ways to achieve greater efficiency and effectiveness,' said executive director Patrick Snowball.

'These changes are necessary to adapt to changing market conditions and make our business fit for the future.'

Roger Lyons, joint general secretary of union Amicus, said he was seeking a meeting with NU in a bid to persuade managers to change their minds about the scale of the cutback. 'We have had no prior consultation about these redundancies, which is directly against the European information and consultation directive,' he said.

NU's parent Aviva warned in April that job cuts were likely among its 33,000-strong UK workforce. It has suffered a sharp drop in insurance and pension sales. NU last summer cut more than 300 jobs in a revamp of its call centre operation.

The company said the latest cuts would have a 'minimal impact' on staff dealing with customers, and were not linked to the recent opening of an Aviva call centre operation in India.