Aon Restructuring To Shed 5,400 Jobs by End of 2019
According to regulatory filings made in February 2019, Aon has incurred nearly $1 billion in costs related to a restructuring plan announced in May 2017, and will incur about $243 million more in costs when the plan is completed by the end of 2019.
Initiated in 2017, Aon’s global restructuring plan has now estimated the number of job losses between 4,800 and 5,400, a 12 percent increase from a previous announcement in 2018. The plan is intended to streamline processes across the organization improving efficiency, insight and connectivity.
From the plan’s inception through 31 December 2018, Aon has terminated 4,366 positions and incurred total expenses of $982mn for restructuring and related separation costs.
The program is expected to finalize in the final quarter of 2019. It is expected to result in costs of approximately $1.225bn, consisting of approximately $450mn in employee termination costs, $130mn in technology rationalization costs, $65mn in real estate consolidation costs, and $50mn in non-cash asset impairments, as well as $530mn in other costs. By the end of 2019, estimated savings from the restructuring plan and other operational improvement initiatives are expected to be roughly $500m per year.