Britain’s Insurer Direct Line Will Lay Off Almost 2,000 Employees image

The British Direct Line Insurance Group announced its plans to cut 2,000 jobs, part of its strategy to boost profit and reduce costs.

Direct Line Insurance Group, which is the motor insurer offshoot of Royal Bank of Scotland, said that the tough competition had forced the company to deal with sluggish price growth over the past 10 years. although it is the largest car insurer in Britain, Direct Line Insurance has begun in 2010 to reduce costs and avoid high-risk drivers in order to keep away from the stiff competition and also the new British regulation in the auto insurance market.

“This is another step in the ongoing transformation of Direct Line Group and an important part of our aim to regain competitive edge,” Chief Executive Paul Geddes said.

In 2012 the company said it aims at saving 100 million pounds annually by the end of 2014, but also cut around 900 jobs, part of its strategy to become more profitable before the stock market listing. Direct Line expects the cutbacks to help it save more money and even reach a cost-base for next year to around 1 billion pounds.

Source: Reuters