FINANCIAL SERVICES company Aviva has altered a redundancy plan which would have meant almost 1,000 staff departures.

Instead of reducing the workforce in its Irish operations by 770, the company said it now planned to make between 500 and 540 people redundant.

Separately, it is also planning to create 220 additional posts in Galway in claims insurance and direct sales. Recruitment for these positions will begin in the summer.

Last October the company said it planned to reduce staff numbers by 950. That included 180 employees of Aviva Europe based in Ireland, who have already left and the 770 Aviva Ireland staff. In net terms, redundancies will be about 450 fewer than announced last year.

Seán Egan, chief executive of Aviva Group Ireland, said the company was able to secure the required cost savings with a lower number of job cuts.

Unite trade union confirmed it had reached agreement “in principle” with Aviva on the reduced number of voluntary redundancies.

“We remain disappointed at the loss of jobs . . . but there has been a reduction in the number of positions being made redundant from an original 770 to a figure now of 540,” said Unite’s Brian Gallagher. “In addition, we are pleased to have secured an initial 220 new positions in Galway as well as maintaining strong existing bases in Dublin and Cork.”

Staff leaving the company will do so on a voluntary basis, with agreement in principle reached on a redundancy package of six weeks per year of service, the union said. Those leaving would also receive a personal retraining allowance valued at €8,000.

Unite members are to be balloted on the terms, with the union recommending acceptance.

Minister for Jobs Richard Bruton welcomed the decision, although he said a large number of Aviva staff were still facing redundancy. “The news that the number of job losses will be substantially lower than originally announced is very welcome. I am also happy to welcome the news that the company is creating 220 jobs in a new operation in Galway,” he said.