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Direct Line job losses ‘a savage bolt from the blue’

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.

The fact that Unite, the union with the largest number of finance sector workers in the country, has been refused recognition makes it easier for Direct Line to announce these savage cuts out of the blue.

Unite will continue to strongly oppose anti-union bias where it exists in the finance sector and will give all the support we can to our members at Direct Line on an individual basis.

– Unite national officer for finance Dominic Hook

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Direct Line revealed £94.3m profits for first quarter

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.

Direct Line has said it is planning to cut 2,000 jobs to reduce costs. Credit: Press Association

However, the group, which also owns Green Flag and Privilege, also saw gross premiums fall 4.5% during the quarter to about £1 billion.

Read: Head office and support roles at risk at Direct Line

Direct Line: Staff at risk will be dealt with 'fairly'

While we continue to invest in the business with the aim of winning in a market which is changing fast, it’s clear that we need to become more efficient to deliver the good service and value our customers expect.

We have not made these proposed changes lightly and understand the impact they will have on our people.

As we have done in the past, we will deal fairly and carefully with those impacted, and do all we can to support them through these changes.”

– Paul Geddes, Chief Executive Officer of Direct Line Group

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Head office and support roles at risk at Direct Line

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.

Direct Line employs more than 10,000 people across the UK Credit: Press Association

But a statement said it hoped to redeploy staff where possible and find opportunities for affected workers with other potential employers.

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