Direct Line Insurance group has said that it is planning to axe 2,000 UK jobs as it seeks to extend its cost-cutting plan.
The group announced plans in August 2012 to reduce gross annual costs by £100m a year, but now plans to double its cost-saving programme.
The latest cuts affect around 14 per cent of its 14,400 staff. Direct Line has already been forced to cut 1,200 jobs since August.
Direct Line said that it had begun talks with staff and employee representatives over the job losses.
It said the cuts would affect staff at its head office in Bromley and support roles including HR, communications and finance. The group said it would try to redeploy those affected where possible.
Direct Line Insurance Group – which also owns the Green Flag Churchill brands – was spun off from RBS last year as a condition of the bank’s £45bn taxpayer rescue after the 2008 financial crisis.
RBS still holds a 48.5 per cent share in Direct Line; however it has to sell its entire stake in the business by the end of 2014.
Direct Line has 16 sites across the UK including offices in London, Bromley, Croydon, Leeds, Manchester and Glasgow.
Its Teesside call centre is set to close next week as part of the group’s original cost-cutting plans.
Paul Geddes, chief executive said that the cost savings were “an important part of our aim to regain competitive edge”.
He added: “We have not made these proposed changes lightly and understand the impact they will have on our people.”
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