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Insurer Aviva to axe 1,100 jobs

LONDON (AP) — Aviva PLC said yesterday that it plans to eliminate 1,100 jobs in Britain in its Norwich Union Life division, about 3.7 percent of the company's 30,000 employees across the country.

Aviva said it also planned to eliminate 590 contract positions, also by the end of this year.

The company said it hoped to minimise the impact through natural turnover, reassignment and eliminating some vacant positions.

The Unite union, which disclosed the cuts before the company's announcement, reacted angrily.

"Today we see a scenario where a company that is continuing to deliver positive results is slashing the staff that have enabled them to weather the current financial storm," said Derek Simpson, the union's joint general secretary.

"Unite is angry that Aviva is repeating what appears to be an annual exercise of cutting thousands of staff. It is unacceptable that once again shareholders received their full dividends, while the workers who brought the company this success are rewarded with job losses."

Aviva said the cuts were the result of an efficiency drive.

"Our strategy over the last three years has seen us transform and simplify our business, leaving us well placed to face the challenges ahead," said Mark Hodges, chief executive of Norwich Union Life.

"Unfortunately, this means that a reduction in the number of roles in the business is inevitable," he added.

Aviva shares were up five percent at 238.75 pence on the London Stock Exchange.