Wednesday, September 05 14:28:46
Direct Line Insurance Group plans to cut almost 900 jobs as part of a cost-saving plan to make it more profitable as it plans for a stock market listing, possibly as soon as next month.
Britain's largest motor insurer, a unit of Royal Bank of Scotland with brands including Churchill and Green Flag as well as Direct Line, said today it planned to make 891 staff redundant in the first phase of a cost-cutting plan.
The company said last month it was seeking to save 100 million pounds ($158.9 million) a year by the end of 2014 by reducing administration costs in central functions and improving marketing efficiency.
The first phase will include the closure of its call centre in Teesside, northeast England, as it needs fewer staff to handle calls, the company said in a statement. It also plans to reduce costs at its head office in Bromley, southeast London.
Direct Line said it had started consulting with affected employees and unions as it steps up plans to improve efficiency ahead of the planned share sale.
The company aims to list in coming months, possibly in October, and analysts say it could attract a stock market valuation of about 3 billion pounds, making it one of London's biggest listings for years. (C ) Reuters