Direct Line Insurance Group plans to cut 550 jobs worldwide as it faces tough trading conditions, the company has announced.
The cuts will mean the business loses 5% of its global workforce and are the result of its motor insurance arm failing to perform as expected.
According to the British insurer, the move, which also includes “improvements in procurement, technology rationalisation and simplifying our operating model”, will deliver £50 million in cost savings in 2025.
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The company also reported the loss of 71,000 own-brand motor insurance customers in the three months to the end of September 2024.
In the same period, it reported a drop in gross written premium and associated fees, which fell to £836 million from £1.28 billion last year.
Adam Winslow, who joined Direct Line Group as CEO in March from rival insurer Aviva, announced the cost-cutting drive in a trading update yesterday.
He said: “We are in the early stages of a significant turnaround and our Q3 trading is not yet fully reflective of the actions we have taken.”
The home and motor insurer, which has around 9,000 staff worldwide, is consulting on the role reductions but it has not yet revealed which departments will be affected. However, it said that some of the job cuts will include no longer filling existing vacancies.
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