Direct Line to cut 800 jobs across the UK as it seeks to reduce costs
Insurer Direct Line is planning to cut 800 jobs across the UK as it seeks to reduce costs.
The insurer told staff today about the planned cuts which were first reported by Sky News.
The cutting of 800 jobs equates to just over seven per cent of Direct Line’s workforce of about 11,000 people.
One of Direct Line’s sites is set to be closed in 2022, while another will be dramatically downsized.
In the company’s headquarters in Bromley, roughly 1000 employees are expected to move to agile working, with a small number of roles expected to be cut.
The job losses come in the context of a move to supply customers with insurance digitally.
A Direct Line spokesperson said: “Like many companies we are having to prepare for changes in the way we operate reflecting changing customer behaviour where people are increasingly opting to interact with us digitally.
“We are therefore proposing a number of changes across the business which sadly mean the loss of jobs for some of our people.
“These decisions are always really difficult, we take the wellbeing of our people very seriously and have given people as much time as possible to prepare.
“We will be working with our employee representative body to make sure people are well supported through the process including helping them to find alternative employment by working with local organisations and providing CV and interview training.”
Direct Line boss Penny James told shareholders last year that Direct Line was seeking to remove £60m of costs as it tries to become more efficient.
The current round of cuts are part of that cost-reduction plan.
The insurance sector is also facing significant scrutiny over the way it penalises loyal customers with higher premiums and the way it calculates personal injury claims.
The FTSE 250 company is set to announce its results next week.
Shares fell nearly one per cent to 315p today.