Direct Line to cut 900 jobs

published 5 September 2012

Insurance company Direct Line, which is currently owned by Royal Bank of Scotland, is to cut 900 jobs in a bid to save costs.

More than half of the jobs will go at Direct Line's site in Stockton-on-Tees, which is to be closed.

Direct Line has launched a series of initiatives aimed at saving £100m by the end of 2014.

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Chief executive Paul Geddes said: "We have not made these proposals lightly and fully understand the impact this will have on our people".

"As we have done in the past, we will be open and honest, dealing fairly and carefully with those affected," he said.

RBS is preparing demerge the firm ahead of an expected float on the London Stock Exchange.

The bank was ordered by European regulators to sell the business following its £45bn bailout by the UK government.

Direct Line currently employs 15,000 people and owns brands such as Churchill and Green Flag.

It reported a 7% rise in operating profits in the first half of the year.

Pre-tax profits fell from £187.5m to £106.5m, which the company blamed on restructuring and other one-off costs relating to splitting from RBS.