Aon expands the scope of its global restructuring plan
Re/insurance broker Aon has expanded the scale of a restructuring plan first announced in 2017.
The broker’s global restructuring plan is now expected to result in between 4,800 and 5,400 job losses, an increase on the 4,200 to 4,800 originally announced, according to its annual 10-K filing.
In 2017, Aon initiated a global restructuring plan connection with the sale of the Divested Business. The Restructuring Plan was intended to streamline operations across the organization and deliver greater efficiency, insight, and connectivity. Aon said it expects its annualised savings from the restructuring plan and other operational improvement initiatives will be approximately $500 million by the end of 2019.
The broker said, in the February 19 US Securities and Exchange Commission filing, that the restructuring plan is intended to streamline operations across the organisation and deliver greater efficiency, insight and connectivity.
"We expect these restructuring activities and related expenses to affect continuing operations through the fourth quarter of 2019, including an estimated 4,800 to 5,400 role eliminations," the company stated in the filing.
Since the inception of the Restructuring Plan through December 31, 2018, the company said it has eliminated 4,366 positions and incurred total expenses of $982 million for restructuring and related separation costs.
The filing stated that the Restructuring Plan is expected to result in cumulative costs of approximately $1.2 billion through the end of the plan, consisting of approximately $450 million in employee termination costs, $130 million in technology rationalization costs, $65 million in lease consolidation costs, $50 million in non-cash asset impairments, and $530 million in other costs, including certain separation costs associated with the sale of the Divested Business.
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