A MAJOR insurance firm is to axe more than 500 workers – with jobs in Scotland at risk.
Motor insurer Direct Line said the move is part of a money-saving programme to deliver “£50million gross costs savings in 2025”.
The company reported “challenging” trading conditions and revealed the number of policyholders signed up to its own-brand motor insurance fell from 3.119 million at June 30 to 3.048 million at September 30.
Consultations are taking place as part of a proposed reduction of 550 roles.
Some of the cuts will include vacancies no longer being filled.
The firm includes brands such as Direct Line, Churchill and Green Flag and employs more than 10,000 workers worldwide.
It has three auto service garages in Scotland and a regional office in Glasgow.
In its trading update, the company wrote: “A series of initiatives aimed at simplifying the organisation is projected to deliver £50 million gross costs savings in 2025, showing material progress towards our target of at least £100 million gross cost savings by the end of 2025, on a run rate annualised basis.
“Our drive to create a leaner and more efficient operating model is advancing, with consultations currently taking place as part of a proposed reduction of around 550 roles.”
Chief executive Adam Winslow said: “We are in the early stages of a significant turnaround and our third quarter trading is not yet fully reflective of the actions we have taken.
“In Motor, trading conditions have been challenging although we continued to grow policy count on price comparison websites (PCW) and have worked at pace on the launch of the Direct Line brand in this channel.
“We are making good progress against our gross cost savings target, with around £50 million expected to be delivered in 2025 from improvements in procurement, technology rationalisation and simplifying our operating model.
“We believe the steps we are taking will position the company for enhanced profitability and growth as we build on our strong foundations to become the customers’ insurer of choice.”
Elsewhere, we told how hundreds of jobs could be axed at a Scots university under plans to save millions.
135 workers could be made redundant as part of Robert Gordon University’s Finance Transformation Project.
RGU chiefs say they are facing “significant financial challenges” and that the proposals will “ensure the long-term financial sustainability” of the institution.
