HUNDREDS of workers at Norwich Union in Eastleigh could be facing the axe after the company's parent group announced it needed to slash millions of pounds from its annual costs.

Parent group Aviva made the shock announcement today, saying it needed to trim £350m from its outgoings, of which £300m will come from its UK operations.

Although the insurance giant has yet to say how many staff will be affected by its plans, it has said job cuts are under consideration.

The news will be a massive blow to the 1,000 employees of Norwich Union on Templars Way in Chandler's Ford, who last September were left reeling when the company announced it needed to shed 200 posts by the end of this year.

Now fears are growing that an even larger number of jobs could go this time too.

Today's announcement follows Aviva's half-year results which revealed an 8% fall in group operating profits as earnings were knocked by claims relating to the June floods.

Norwich Union also has a history of outsourcing its jobs, with 6,200 roles already gone to India, and another 300 jobs set to be offshored by the end of the year.

Trade union leaders say they have already requested an urgent meeting with the Aviva to discuss its plans and how they will affect its workforce.