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Plans for around 2,000 job losses at Direct Line to reduce costs have been branded as “a savage bolt from the blue” by the country’s largest union, Unite.
Unite said that it had several hundred members working for the company but no union recognition.
Direct Line recently revealed £94.3 million profits for the first three months of 2013.
This was an increase of 47% on the previous year due to cost savings and unusually low weather-related claims.
However, the group, which also owns Green Flag and Privilege, also saw gross premiums fall 4.5% during the quarter to about £1 billion.
Last year, Direct Line was spun off from Royal Bank of Scotland when it floated on the stock market to satisfy European Union conditions on state bailouts.
RBS still owns 48.5% of the insurer but must sell its entire stake by the end of 2014.
Insurance group Direct Line has announced its plans to reduce its annual costs by approximately £130 million to about £1,000 million for 2014.
Last year, the group said it planned to save annual costs of up to £100m by next year.
Up to 2,000 head office and support staff could be made redundant as a result of the latest proposals.
Direct Line- the UK's biggest motor insurer - has announced further cost-cutting proposals which could put up to 2,000 jobs at risk.
The group said that staff across head office and support functions were expected to be impacted in the latest round of redundancies.
But a statement said it hoped to redeploy staff where possible and find opportunities for affected workers with other potential employers.
About 2,000 jobs are under threat at Direct Line Insurance after the group announced plans to more than double its cost-saving plans.