Marsh & McLennan plans to cut 750 jobs in the US, while in the UK insurer Aviva is planning an even more drastic shedding of 4000 jobs.

Marsh & McLennan says it will centralise data systems and reduce office space to lower annual expenses by $US350 million ($465 million) by the end of 2008.

President and CEO Michael Cherkasky says the company began a year ago to rationalise its IT infrastructure, institutionalise firm-wide best practice, automate systems and eliminate redundancies.

“While these savings include managed attrition and staff reductions of approximately 750 currently identified positions, the majority of the savings will be achieved from more efficient processes.”

Mr Cherkasky says company-wide changes in IT infrastructure include establishing global centres for service, infrastructure and network operations; improving procurement management; and consolidating architecture such as data centres and servers.

Aviva, the UK’s largest insurer, will cut 4000 jobs at subsidiary company Norwich Union by the end of next year, aiming for an annual saving of £250 million ($625 million).

The company says about half the redundancies are expected to be compulsory.

Of the reductions, about 1000 operational roles will be handled in India, in line with plans already announced, and about 500 IT roles will be outsourced.

Norwich Union Executive Chairman Patrick Snowball says the operational changes are necessary to “reshape and simplify” operations to meet the challenges of the changing insurance market.

“We recognise that tough decisions such as these are difficult for the people affected, but they are absolutely necessary,” he said. “We will look for every opportunity to redeploy staff in new roles and we will ensure those affected get specialist career assistance.”