Provided by Associated Press / Bloomberg News
Aon Corp., the world’s biggest insurance broker, plans to cut 1,500 to 1,800 jobs globally as it integrates businesses after the acquisition of consulting firm Hewitt Associates Inc. The cuts and real estate consolidation process will occur over the next three years.
The reductions and other expenses, including those tied to real estate, will cost about $325 million, the Chicago-based company said today in a regulatory filing. Aon said it expects the integration to generate annual savings of about $355 million in 2013.
Chief Executive Officer Gregory Case completed the $4.7 billion purchase on Oct. 1. The acquisition, Aon’s biggest, added to the broker’s consulting businesses. Aon Hewitt, the subsidiary created by Case to integrate the businesses, has about 29,000 employees.
“There are going to be some redundancies as part of this” acquisition, Case told analysts in a July conference call. “But the focal point, our energies are really going to be around how we build this and grow this.”
Aon’s expenses will be split between $180 million of employee termination costs and $145 million to reorganize real estate, the company said.
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October 16th, 2010 at 5:51 am
Yikes!