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| Direct Line set to cut 2,000 UK jobs | Direct Line set to cut 2,000 UK jobs |
| (about 2 hours later) | |
| Direct Line Insurance has said that it is planning to cut 2,000 UK jobs as it steps up plans to reduce costs. | Direct Line Insurance has said that it is planning to cut 2,000 UK jobs as it steps up plans to reduce costs. |
| The firm announced in August 2012 plans to reduce gross annual costs by £100m a year, but now plans to save more than double this target. | The firm announced in August 2012 plans to reduce gross annual costs by £100m a year, but now plans to save more than double this target. |
| The latest cuts affect about 14% of its 14,400 staff. Direct Line has already cut 1,200 jobs since August. | The latest cuts affect about 14% of its 14,400 staff. Direct Line has already cut 1,200 jobs since August. |
| Direct Line said that it had begun consultations with staff and employee representatives over the job losses. | |
| It said the cuts would affect staff across head office and support functions, but it would try to redeploy those affected where possible. | It said the cuts would affect staff across head office and support functions, but it would try to redeploy those affected where 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 after the 2008 financial crisis. | 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 after the 2008 financial crisis. |
| RBS still holds a 48.5% share in Direct Line, but it has to sell its entire stake in the firm by the end of 2014. | |
| Direct Line operates in 16 locations across the UK including London, Croydon, Bromley, Leeds, Glasgow and Manchester. | |
| Its Teesside call centre is scheduled to close next week as part of of the firm's original cost-cutting plans. | Its Teesside call centre is scheduled to close next week as part of of the firm's original cost-cutting plans. |
| Chief executive Paul Geddes said that the cost savings were "an important part of our aim to regain competitive edge". | Chief executive Paul Geddes said that the cost savings were "an important part of our aim to regain competitive edge". |
| "We have not made these proposed changes lightly and understand the impact they will have on our people," he added. | "We have not made these proposed changes lightly and understand the impact they will have on our people," he added. |