Direct Line to make 2,000 members of staff redundant

Insurance giant Direct Line has revealed plans to shed an additional 2,000 jobs in order to achieve extensive cost savings, most of the cuts affecting the company's head office, a news report on this matter reveals.

The insurer runs operations in Leeds, Manchester, Birmingham, Bromley, Bristol, Stockton-on-Tees, Doncaster, Glasgow, Ipswich, London and Pudsey, and officially stated that this redundancy programme was part of a plan to improve its operational efficiency and was on top of the 900 job losses it announced in 2012.

Direct Line hopes to cut its cost base to £1bn, although a spokesman for Direct Line said further details of the locations affected will be released once employees have been notified.

Direct Line chief executive Paul Geddes said: "This is another step in the ongoing transformation of Direct Line Group and 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."

Naturally, given the sheer scale of this redundancy process, it's quite likely that Direct Line's HR department will be under quite a serious level of stress over the next few weeks, and the same would most likely apply to any firm facing a similar situation.

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