Direct Line News: To Cut 2000 UK Jobs
News Updates From Direct Line
Direct Line News Update: Direct Line to cut 2000 UK jobs, a report has revealed. The insurance company says that the cuts are necessary to reduce costs.
Last month the Insurance giant announced that in a cost cutting exercise it was going to have to shed two thousand jobs in an attempt to reduce annual costs by one hundred million pounds per year. The company have now updated this initial estimate and announced that it is aiming for savings of double that amount. The job cuts that have been announced will impact on about fourteen per cent of the Direct Line staff and the company has already cut one thousand two hundred jobs Nationwide. The company is currently in talks with staff and with representatives of employees to discuss the planned job losses and the impact that they will have on the staff of Direct Line.
Direct line have said that the job cuts are going to affect their staff within head office and in support functions, and that it would be trying to find other roles for those affected by the removal of their original roles, wherever it was possible.
Direct Line Insurance Group – which also owns the Churchill and Green Flag brands – was spun off from RBS last year as a condition for the bank’s £45bn government bailout imposed at the onset of the 2008 financial crisis. The Royal Bank of Scotland are still 48.5% share holders in Direct Line but will need to sell its holding in the firm by the end of the year 2014.
Direct Line have operations and employ staff all over the United Kingdom in sixteen different locations, that include offices in Manchester, Glasgow, Leeds and around London in Croydon and Bromley. The call centre in Teesside is scheduled for closure this month as part of the on going cost cutting plans that are being implemented by Direct Line.
Updates On Direct Line
Direct Line’s Chief Executive Paul Geddes has commented that the cost cutting measures had been necessary in order for Direct Line to regain a more competitive position in the industry. He added that the company had not made the cuts lightly and did understand that the loss of jobs would have a considerable impact on those staff affected. He reiterated the fact that wherever possible the staff whose jobs were lost in the job cuts would where possible be offered jobs in other parts of the organisations.
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