Direct Line to cut 900 jobs
Insurance company Direct Line, which is currently owned by Royal Bank of Scotland, is to cut 900 jobs in a bid to save costs.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published