Aon cuts up to 1,800 jobs after Hewitt buyout

AP News
Posted: Oct 14, 2010 10:34 AM
Aon cuts up to 1,800 jobs after Hewitt buyout

Aon will cut 1,500 to 1,800 jobs over the next three years, the insurance conglomerate said Thursday, two weeks after closing its acquisition of Hewitt Associates.

A broad restructuring of the company will be completed by the end of 2013 and Aon said it expects to save $355 million per year, including $280 million per year by eliminating jobs.

Aon closed its $4.9 billion acquisition of Hewitt Associates, a human resources specialist, this month. The company has about 36,000 employees, including 29,000 in its Aon Hewitt human resources business. The job cuts announced Thursday will trim 4 percent to 5 percent of that work force.

The company said the plan will cost $325 million to implement, including $180 million in employee severance costs and $145 million in real estate expenses. It disclosed its plans in a filing with the Securities and Exchange Commission.

Shares of Aon Corp., world's largest insurance broker, closed at $39.46 Wednesday.