The decision to axe Scottish jobs has come in for criticism

Glasgow City Council was forthright in its condemnation of the move, which could cost the city 250 jobs.

A further 200 posts have been earmarked in Perth which local MSP Roseanna Cunningham described as a "major blow".

The Scottish Executive said it was "disappointed" by the losses and offered to support those affected.

Steven Purcell, Glasgow City Council's leader, said: "This is a massive disappointment for the dedicated workforce at sites across the city.

I am confident that those affected by job losses will be able to secure employment in what is a still a growing sector for Glasgow Dr Lesley Sawers Glasgow Chamber of Commerce

"Our priority will be to work with our partner agencies to offer assistance and support to those affected."

The disappointment across Glasgow was echoed by Dr Lesley Sawers, chief executive of Glasgow Chamber of Commerce.

She said Aviva's announcement reinforced the challenges Scotland faced from India and the Middle East.

She added: "I am confident that those affected by job losses will be able to secure employment in what is a still a growing sector for Glasgow."

Roseanna Cunningham, the SNP MSP for Perth, said: "I'm very disappointed with the news. The operation there is a major employer and cutting 200 jobs is a blow to a community the size of Perth."

'Clear indication'

Murdo Fraser, Scottish Conservative deputy leader and enterprise spokesman, said: "There will be hundreds of families affected by this announcement and this will be a time of worry for them.

"Sadly, Scotland is still seen as too difficult a place in which to do business. The Scottish Executive must take action to reduce business burdens in order to protect our private sector."

Perth and Kinross Council's convener of enterprise and infrastructure, Councillor Alan Livingstone, said: "This reflects an increasing trend amongst the public to embrace the self-service industry and making their own arrangements online.

"Norwich Union's experience is a clear indication of what lies ahead and business needs to prepare itself for these changes."

An executive spokesman said: "We are disappointed that Norwich Union has taken this decision.