Aviva to cut jobs in fund management
INSURER Aviva will shed 160 staff from its fund management business, with London suffering the bulk of the cuts, after deciding to focus its efforts on “core” operations.
Around 12 per cent of Aviva Investors’ global workforce will lose their jobs during 2012 as the firm cuts niche investment products following poor demand for riskier assets during the financial downturn.
Alain Dromer, chief executive of the fund management arm, led a strategic review of the business and has decided to focus on in fixed income, real estate and multi-asset investments aimed at the institutional market.
The changes will eliminate teams dealing with European, emerging markets and global equities as well as a sustainable responsible investments (SRI) desk.
“Greater focus in core areas of strength would improve profitability and enable Aviva Investors to continue to invest in the development of its global infrastructure,” the firm said.
Employees are being consulted and the firm has said efforts will be made to redeploy them within the wider Aviva group.
In a separate development Aviva has sold its life insurance businesses in the Czech Republic, Hungary and Romania to rival Metlife as it continues its policy of focusing on more profitable territories.
Aviva did not disclose the value of the sales but said the three businesses accounted for less than 0.5 per cent of group profit and had total assets of €57m (£47.8m) in June 2011.
Shares in Aviva closed down 3.76 per cent at 342.7p.