Partner Article

Direct Line cut 500 jobs in Teesside

500 jobs will potentially be lost in Teesside after insurer Direct Line has announced plans to cut costs of up to £100m by 2014.

A total of 900 jobs will be lost across the country, and the bulk of people released from their posts work in a call centre based in Stockton-on-Tees.

The action will be taken in what has been reported as the first phase in a cost cutting campaign to reduce administration costs and boost efficiency.

Direct Line said fewer callers would be needed once the company pulls back on operations, resulting in the significant jobs loss.

The announcement came just days after the insurance firm separated from parent company RBS, after European regulators demanded that the bank offload Direct Line to secure a £45bn UK bailout on the continent.

Direct Line is expected to be listed on the stock market in coming months after state-owned RBS has effectively cut ties with the company.

The insurance organisation said in its interim report: “Other than some transitional services provided by RBS Group, we have essentially achieved the goal of operating as a standalone insurance company.”

Profits of £106.5 million before tax were announced up to the end of June this year, which shows a 57% drop from the first half of 2011.

This was posted in Bdaily's Members' News section by Miranda Dobson .