1. Aon restructuring efforts continue in 2019
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Aon PLC’s restructuring program, which was announced two years ago, drew continued interest last year as the program evolved and the brokerage made additional layoffs, including some high-profile executives.
The original restructuring plan was put in place in 2017 following Aon’s benefits outsourcing unit.
A February 2019 story on an increase in the number of job eliminations at Aon was the most read risk management-related article on Business Insurance’s website in 2019.
The disclosure, which was made in a filing with the U.S. Securities and Exchange Commission, came shortly after the brokerage announced that Tom Fitzgerald, CEO of Aon Broking, who had been with Aon for 27 years, would be leaving the firm and would not be replaced.
In October, Aon announced further senior departures – John Zern, CEO of global health solutions and CEO of North America commercial risk and health solutions, and Cary Grace, CEO of retirement solutions and head of M&A integration. Neither executive would be replaced, Aon said.
According to Aon’s most recent quarterly filing with the SEC, the brokerage expected the restructuring plan to continue to affect its operations through the fourth quarter of 2019 and that the total number of jobs eliminated through the program would be between 5,400 and 5,600. The program will result in cumulative charges of $1.35 billion, including $550 million in workforce reduction costs, Aon said.
Through the end of the third quarter, Aon had incurred $1.26 billion in restructuring costs, the filing said.
