The Chicago-based consultancy said the restructuring plan is focused primarily on structural changes that will improve expense management through simplification and consolidation across the company. As a result of the plan, Aon says it intends to:
- eliminate 2,700 positions, predominantly non-client facing roles, including 1,100 positions that will be off-shored or outsourced;
- further consolidate functions such as Human Resources, Finance and Information Technology around the globe;
- evaluate options to consolidate and simplify European operations on a country-by-country basis focusing on shared service functions, real estate and off-shoring or outsourcing of positions;
- and simplify real estate globally through “model office” practices.
The Chicago-based firm said that the restructuring plan, before any potential reinvestment of savings, is expected to deliver $50-70 million of savings in 2008, $175-200 million in 2009 and $240 million of annualized savings by 2010 (of course, the press release also notes that actual savings, total charges and timing may vary from the estimates due to changes in the scope or underlying assumptions of the plan).
Just two years ago Aon began executing “a broad restructuring initiative to reduce its fixed cost base and increase client service efficiency”. In a press release issued today, Aon said that three-year restructuring plan is substantially complete.