Aon Corp. (AON), the world's biggest insurance broker, revealed in a regulatory filing Thursday a restructuring plan which includes cutting 1,500 to 1,800 positions globally, as it combines the operations of the recently acquired Hewitt Associates with its own.

Aon completed the $4.9 billion acquisition of consulting firm Hewitt Associates, which was completed on October 1, 2010. The restructuring plan will continue through the end of 2013. As part of the plan, Aon estimates it will cut predominantly non-client facing positions.

The insurance conglomerate expects the restructuring to result in total annual savings of around $280 million in 2013. Additional savings from areas such as information technology, procurement and public company costs will result in a total savings of $355 million that year.

The restructuring plan will cost approximately $325 million, the company said, consisting of approximately $180 million in employee termination costs and approximately $145 million in real estate rationalization costs.

Hewitt has 29,000 employees globally, and Aon has more than 36,000 employees, according to the companies.

Increase your money and finance knowledge from home

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Forex for Beginners

Learn about trading currencies and foreign exchange transactions

View Course »

Add a Comment

*0 / 3000 Character Maximum

2 Comments

Filter by:
jkennedy806

Summer of recovery is over -- Last week it was Sanofi Aventis 4 th largest pharma company in the world laying off 1700 employees as it pursues an American company genzyme. Now the world's largest insurance broker to cut jobs. I am beginning to see a trend, our summer of recovery is now affecting global companies to cut world wide. Oh yeah, the US is gonna be real well liked -- I can't see how, we can go into other countries and tell them how to do it, when we can't even keep our own house (Congres) in order.

October 14 2010 at 11:16 AM Report abuse rate up rate down Reply
Carol

Ridiculous! There should be stipulations disallowing companies who swallow up other companies that no layoffs will be forthcoming! I've been through this three times in the past five years and it really is devastating to families. If a company wants to buy out another, then accept the consequences of having additional employees on your payroll. I know, I know...it's not financially feasible, but now they'll all be on unemployment and 90% will never find another job. Shame on these companies. All they have to do is eliminate the multi-million dollar salaries they pay to their CEOs and COOs and everyone can keep food on the table and clothes on their back. Greed!

October 14 2010 at 9:59 AM Report abuse rate up rate down Reply