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 the half the jobs are permanent, with the other half one-year contracts.
The proposed job losses are subject to a 90 day consultation process.
"In the last year, we had been building up our staff numbers in the area of PPI claims handling in response to Barclaycard’s additional requirements. This surge of PPI claims has reduced and as a result, we now need to scale down our staff numbers.
"There will be opportunities for some of those colleagues to be offered alternative work within Firstsource, and we are doing our utmost to minimise the impact on the colleagues whose roles are now at risk. For those colleagues whose roles will be redundant, we are offering a range of support such as outplacement advice and training."
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