Insurer DirectLine to cut 2,000 UK jobs - on top of the 1,200 from last year
Wednesday 26 June 2013
DirectLine, the insurance giant that owns Churchill and Green Flag, has announced it will cut a further 2,000 British jobs in addition to the 1,236 posts it axed last year.
The insurer, which had to be spun out of the taxpayer-controlled Royal Bank of Scotland last year on European regulator orders, said it needed to make the cuts to “regain competitive edge”.
The job cuts will come largely at its head office in Bromley and across support functions including human resources, risk, communications and finance. Consultations with staff and unions began today. Just over 500 jobs will go at Bromely and another in Croydon.
DirectLine said the cuts would help to ensure that its cost base comes down to £1bn by the end of 2014 which is £130m less than the 2011 figure. The cost of making the cuts including redundancies, onerous property leases and transferring away from RBS computer systems to its own new ones would total £440m by the end of 2014. Half of that will fall this year.
The chief executive Paul Geddes said: “This is another step in the ongoing transformation of DirectLine and an important part of our aim to regain competitive edge. While we continue to invest in the business with the aim of winning in a market which is changing fast, it’s clear that we need to become more efficient to deliver the good service and value our customers expect.”
A DirectLine spokewoman said: “We are still built like a bank and we need to be built like an insurance company. Since the flotation away from RBS we have taken full control of our own cost base.”
Geddes added: “We have not made these proposed changes lightly and understand the impact they will have on our people. 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.”
Diving in at the deep end is no excuse for shirking the style stakes
- 1 Why I'm on the brink of burning my Israeli passport
- 2 Japanese plant experts produce 10,000 lettuce heads a day in LED-lit indoor farm
- 3 War is war: Why I stand with Israel
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Israel-Gaza conflict: Death toll tops 125 after overnight raids as Operation Protective Edge continues
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: Pro-Palestinian demonstrators take to streets of London, Paris and New York in wave of protests
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...