Aon to Lay Off 1,800 Employees in a 3-year Restructuring

March 10, 2006

Aon Corp. released information this week in its annual report saying that it will cut 1,800 jobs from its worldwide operations through a three-year restructuring plan.

The annual report filing made to the U.S. Securities and Exchange Commission, filed March 9, said the reduction in employees originally listed as 1,400 will now be bumped to 1,800. The original estimate of 1,400 layoffs was given when it announced its third quarter earnings in November.

Additionally, the report said that Aon will be closing several offices, making other asset impairments and other expenses necessary to implement these intiatives. The report added that the restructuring plan will result in cumulative pretax charges of $262 million.

Although an Aon spokesperson could not comment at this writing, the report said “the objective of the restructuring and other business reorganization initiatives is to improve thier (Aon) profitablity through operational efficiency.”

In the report Aon also said it expected a targeted annualized savings of approximately $180 million by 2008, but the report added that it could not assure that the company would achieve its targeted savings.

It is unclear exactly where the 1,800 jobs will be cut, however an earlier report said that 750 positions would be cut in England. Specifically which offices will be closed has not been released. The restructuring plan is expected to take place over the next three years.

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