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Deals & People October 14, 2010
Aon Shedding 1,800 Jobs in Restructuring
Aon Corporation has announced a $325 million restructuring plan,
undertaken in connection with its acquisition of Hewitt Associates, in
which 1,500 to 1,800 jobs are expected to be axed.
Reported by Fred Schneyer
According to a Securities and Exchange Commission (SEC) filing, the restructuring expected to be completed by year-end 2013 will generate about $180 million in employee termination costs and about $145 million in real-estate-related costs.
The SEC filing said the eliminated jobs globally are “predominantly non-client facing.”
As a result of the changes, Aon said, it expects to deliver total annual savings of around $355 million in 2013, including approximately $280 million of annual savings related to the restructuring plan, and additional savings in areas such as information technology, procurement, and public company costs.
The $4.7 billion acquisition and the formation of Aon Hewitt with about 29,000 employees was completed on October 1, 2010 (see Aon, Hewitt Complete Merger).
The Aon SEC filing is at http://sec.gov/Archives/edgar/data/315293/000110465910052251/a10-19358_18k.htm.
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