Direct Line Cuts 2,000 Jobs In New Cost Drive

Written By Unknown on Kamis, 27 Juni 2013 | 00.12

The insurance group Direct Line wants to cut approximately 2,000 jobs as part of new cost-cutting plans.

The majority of the anticipated job losses, Direct Line said, would come from head office and support functions though it did not rule out some redeployment.

Three sites would close under the proposals, in Liverpool, Croydon and central London.

The group, which is Britain's biggest motor insurer and behind the Churchill brand, said it had launched a consultation and would work to find opportunities for affected workers with other potential employers.

More than 1,200 positions were cut last year after the transformation plan was first launched.

The latest job cuts - which represent about 14% of its current 14,400-strong workforce - are part of Direct Line's drive to more than double its original cost savings target to over £200m in gross annual savings by 2014, or £130m a year on a net basis.

Paul Geddes, group chief executive, said the firm had "not made these proposed changes lightly."

He added: "As we have done in the past, we will deal fairly and carefully with those impacted, and do all we can to support them through these changes."

Nearly 500 staff work at the Liverpool site that is due to close, while around 240 are employed in Croydon and just under 400 at the London office earmarked to shut.

Direct Line hoped to transfer some of the Liverpool staff to Manchester, while a number of workers at Croydon and in London will transfer to its headquarters in Bromley.

As had been previously announced, the group's Teesside call centre is to shut over the next week.


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