This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6907746.stm

The article has changed 6 times. There is an RSS feed of changes available.

Version 1 Version 2
Co-op 'plans to axe 1,000 jobs' Co-op finance arm cuts 1,000 jobs
(30 minutes later)
The Co-op is set to make up to 1,000 staff redundant from its financial services arm, with Manchester taking the brunt of the cuts, a report says. The financial arm of the Co-op is to make about 1,000 staff redundant this year as it tries to cut costs.
Workers at its insurance and banking arms, which includes the Co-operative Bank and online bank Smile will be hit by the move, the Daily Telegraph said. Co-operative Financial Services (CFS) has not set out where the losses will take place, but Manchester is expected to take the brunt of job losses.
Co-operative Financial Services is among Manchester's largest employers. However, customer-facing roles - in call centres and bank branches - will not be affected, it said.
The paper said that senior managers were briefed on Thursday and the announcement was to be made on Friday.
Nobody from CFS could be contacted by the BBC, though a spokesman told the Telegraph that there would be an "internal and external announcement" on Friday.
'Lost ground'
CFS has about 6.5 million customers in the UK.
The Co-operative Bank has both High Street and internet banking and offers current accounts, credit cards and loans.
Co-operative Insurance provides stakeholder pensions, unit trusts and insurance as well as independent financial advice.
Analysts say that CFS has lost ground amid competition from supermarkets and online insurers.Analysts say that CFS has lost ground amid competition from supermarkets and online insurers.
'Not taken lightly'
CFS, which has about 6.5 million UK customers, is among Manchester's largest private employers. It includes the Co-operative Bank and online bank Smile.
It said it hoped to save £100m in annual operational costs by June 2008.
At the same time, it intended to spend £250m on developing its retail and corporate banking, as well as its general insurance business, it said.
"Decisions taken which lead to a reduction in colleague numbers are not taken lightly and consultation is underway with all the relevant trades unions," said CFS chief executive David Anderson.
He added that the changes to the business would support "a clear business strategy that will see our customer and membership base grow significantly in the coming years".
The Co-operative Bank has both High Street and internet banking and offers current accounts, credit cards and loans.
Co-operative Insurance provides stakeholder pensions, unit trusts and insurance, as well as independent financial advice.
In 2004, CFS sacked 2,500 workers as it looked to cut costs.In 2004, CFS sacked 2,500 workers as it looked to cut costs.