Job Cuts Hit the North East as Swallow Hotels and Aviva Announce Mass Layoffs

Strategic Insights -

A devastating jobs blow has hit the North East region as Swallow Hotels, a hotel chain with roots in Sunderland, and insurance giant Aviva, have announced mass layoffs. Swallow Hotels has collapsed due to financial difficulties after expanding to 673 hotels and pubs. Meanwhile, Aviva is axing 230 North East staff, with 200 jobs cut at its office in Market Street, Newcastle, and 107 BSM driving outlets across the UK, including 30 staff at six North East offices. The news comes on the heels of Aviva's announcement that it will sack 4,000 people nationwide, leaving 130 staff in Newcastle who will be forced to move to a smaller office.

Key Takeaways:

  • Swallow Hotels, a hotel chain with roots in Sunderland, has collapsed due to financial difficulties after expanding to 673 hotels and pubs.
  • Aviva is axing 230 North East staff, with 200 jobs cut at its office in Market Street, Newcastle, and 107 BSM driving outlets across the UK, including 30 staff at six North East offices.
  • Aviva's announcement is part of a larger plan to sack 4,000 employees nationwide.
  • The insurance giant cited "competitive pressures" and the need to "keep costs down" as reasons for the layoffs.
  • Amicus regional secretary Davey Hall described the decision as "ruthless" and "despicable".
  • Norwich Union, a subsidiary of Aviva, had a team of 550 in Newcastle just four years ago, but will now be left with 130 staff.
  • The majority of the work of the laid-off staff will be offshored to India.

Statistics:

  • 673: The number of hotels and pubs that Swallow Hotels has expanded to.
  • 200: The number of jobs cut by Aviva at its office in Market Street, Newcastle.
  • 107: The number of BSM driving outlets across the UK that Aviva is axing.
  • 30: The number of staff cut at six North East offices, including those in Ridley Place, Newcastle, County Durham, and Sunderland.
  • 2,900: The operating profits of Aviva for 2005, a 29% leap on 2004.
  • 4,000: The number of people that Aviva will lay off nationwide.
  • 130: The number of staff that will remain in Newcastle.
  • 550: The number of staff that Norwich Union had in Newcastle just four years ago.

Sources:

  • "Hotel chain collapse causes jobs blow in region" - The Chronicle (date not specified)
  • "Aviva to axe 4,000 jobs as part of major restructuring" - The Chronicle (date not specified)
  • "Norwich Union to cut 200 jobs in Newcastle" - The Chronicle (date not specified)