Aon Merger with Hewitt Will Result in 1,500+ Job Cuts

As integrates with Hewitt Associates Inc., Aon Corp. has disclosed that it plans to eliminate between 1,500 and 1,800 positions globally.

Source: Source: Business Insurance | Published on October 14, 2010

Most of the positions to be cut will be “non-client facing,” Aon said in a Thursday filing with the U.S. Securities and Exchange Commission.

Prior to its Oct. 1 acquisition of Hewitt, Aon Consulting had about 6,300 employees, while Lincolnshire, Ill.-based Hewitt had about 29,000 employees.

While Aon Consulting and Hewitt in 2009 each generated just over $1 billion in consulting revenues, Hewitt’s $2 billion in outsourcing revenues were about 10 times that of Aon Consulting.

In its filing, Aon said it expects to incur about $325 million in restructuring costs, including $180 million in expenses related to employee terminations and $145 million in real estate-related expenses.

Aon expects to deliver total annual savings of about $355 million in 2013, including $280 million of annual savings related to the restructuring plan, with additional savings in areas such as information technology and procurement costs.