An outsourcing firm is to shed more than 500 call centre jobs in Thornaby and Middlesbrough.
Firstsource says the workers are currently employed to process Payment Protection Insurance claims for Barclaycard, but that demand for the service is falling and the operation is to be scaled down.
Around half the jobs are permanent, with the other half one-year contracts.
The proposed job losses are subject to a 90 day consultation process.
– Statement from Firstsource
"In the last year, we had been building up our staff numbers in the areaof PPI claims handling in response to Barclaycard’s additionalrequirements. This surge of PPI claims hasreduced and as a result, we now need to scale down our staff numbers.
"Therewill be opportunities for some of those colleagues to be offered alternativework within Firstsource, and we are doing our utmost to minimise the impact onthe colleagues whose roles are now at risk. For those colleagues whose roleswill be redundant, we are offering a range of support such as outplacementadvice and training."
The firm has confirmed 300 of the jobs it is proposing to axe are permanent positions.
In all, 542 jobs are at risk. The remainder are contract roles.
The firm has also confirmed the job losses will be spread evenly across two sites: its Massey Road operation at Barclaycard's offices in Thornaby, and at its own base at Fountain Court in Middlesbrough.
The job losses are in response to falling demand for Payment Protection Insurance claims handling from Firstsource's client, Barclaycard.
At the Barclaycard offices in Thornaby, around 275 Firstsource staff, currently processing Payment Protection Insurance claims for the credit card provider, are expected to lose their jobs.