Homework: Efficiency

Insurer Zurich to cut workforce:
Up to 900 jobs could be lost at Zurich's general insurance unit in the UK after the firm said it would cut its workforce in an efficiency drive.Zurich is consulting with unions on plans to cut staff numbers by about 10% by the end of the year.The business employs 5,400 staff in 20 locations across the country but it is unclear which offices will be affected.
'Acting swiftly'-Zurich said the "decisive" restructuring would improve customer focus and help to achieve more "sustainable" growth in profits."We recognize that there are difficult times ahead for our people," said Guy Munnoch, chief executive of the firm's general insurance arm."However, it is clear that if we want to remain competitive, we must act swiftly to increase efficiencies so that we can achieve our growth plans and safeguard the future of our business in the UK."

Aviva to cut 1800 insurance jobs:
Aviva, the owner of Norwich Union, will cut up to 1,800 jobs by 2010 as it restructures its insurance operations.Aviva called the move "rationalisation" but the Unite union described the job cuts as "brutal".
Norwich Union insurance operations will be shifted away from cities including Glasgow, Leeds, Sheffield, Liverpool, Birmingham, Bristol and Southampton. The bulk of its insurance business will now operate from seven "centres of excellence" based in Norwich, Perth, Bishopbriggs, Stretford, Manchester, Leicester and Southend.
"We want to deliver excellent, consistent and reliable customer service with market leading efficiency," said the chief executive of Norwich Union Insurance, Igal Mayer.
"To achieve this we will need to fundamentally simplify our business, consolidating our expertise into seven insurance centres of the future in the UK."
Relocation 'inconceivable'-Earlier this year, Aviva, announced it was ditching the 200-year-old Norwich Union brand to forge a single identity to compete in international markets.Unite's deputy secretary, Graham Goddard, said Aviva was "rapidly withdrawing" commitment to local communities and was "isolating themselves in a small number of cities".

Write brief notes on the various types of efficiency - using your own words.
So I've read two articles and made some conclusion: as i understood, this two insurance companies are reducing the amount of workforce to make their business more effective. I want to say that if firms "cick out some unuseful staff", they probably will more properly control the work of their employees, therefore better control of the whole business. Also they will spend less money for the worker's wages...
Also I think that there is another way they made to be their business more effective.
"Earlier this year, Aviva, announced it was ditching the 200-year-old Norwich Union brand to forge a single identity to compete in international markets."- As I understood that sentence, they mergered two "small" firms to make one big company,wich could have a great competitive in the market. Because it is better to have one big firm with a huge influence instead of two small companies with particulary no influence on the market.

With reference to the articles explain what type of efficiency these job losses will lead to?
As I understood the question, it'll sound in simple words like that: what will firms have after cutting workforce? So on the part of the question I answered above. But anyway, will explain again shortly. The firm cut down on workers,so they can manipulate the staff better,moreover they will "waste" less resources on worker's salary. So less money spendings,more control,wich is making business more effective...)))

Explain why the two firms are following this course of action?
As I wrote above the possible two ways to make your business better, the best type I think is to reduce the amount of workforce,so because of that reason the both firms have chosen exactly that way of efficiency..