Insurer Direct Line will make approximately 2,000 roles redundant, according to an update on business transformation plans released today (release).
The Group has begun consultation with staff and their representative bodies. Those individuals potentially impacted are largely employed in roles across head office and support functions.
This move is a ramp up of existing cost reduction plans. Last August the firm announced plans to achieve £100m of gross annual cost savings in 2014, next to a 2011 cost base of £1,134m. Now the group sees the 2014 cost base at £1,000m.
Paul Geddes, CEO of Direct Line Group, said:
This is another step in the ongoing transformation of Direct Line Group 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. 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.