NU Online News Service, Oct. 14, 2:07 p.m. EDT
Aon Corp. said it plans to eliminate more than 1,500 jobs as part of its restructuring plan with the merger of Hewitt Associates.
In a filing with the Securities and Exchange Commission today, the Chicago-based insurance brokerage firm said with the completion of the deal to acquire Hewitt, a human resource and outsourcing solutions firm based in Lincolnshire, Ill., the company plans to institute a restructuring plan that will take until 2013 to complete.
The move is expected to "streamline operations across the combined organization," the filing said.
Aon said the plan will cost $325 million and primarily involve layoffs and "real estate rationalization costs."
Approximately $180 million of the cost will go to layoffs and the remaining $145 million to real estate.
The layoffs are estimated to number between 1,500 to 1,800 positions globally, "predominately non-client facing."
The streamlining is to result in annual savings of around $355 million in 2013, with additional savings in the areas of information technology, procurement and public company costs.
Aon added that the plan has not been finalized and actual savings, costs and timing may vary from its original estimate.
Aon acquired Hewitt in a combination cash and stock deal for approximately $4.9 billion, completing the deal on Oct. 1.
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