Direct Line is to axe about 550 jobs as part of a cost-cutting drive at the insurance company.
The Kent-based company said that it was consulting on the jobs, which would represent about 6% of its total 9,000-person workforce, as part of drive to save £50m next year.
It would not give details on the roles that would go but said some would include vacancies not being filled.
The plans were revealed in an trading update on Monday, in which the company said the job losses would be part of its drive to create a “leaner and more efficient operating model”.
Direct Line had 3.05 million policyholders with its own-brand car insurance at the end of September, down by nearly 400,000 or 11% compared with the same point last year.
Its own brand home insurance increased by nearly 70,000 policyholders compared with last year.
Adam Winslow, the chief executive, said motor trading conditions had been challenging but the company was winning back customers, particularly through price comparison websites.
Winslow added: “We are in the early stages of a significant turnaround and our third-quarter trading is not yet fully reflective of the actions we have taken.”
Winslow joined as chief executive in March from rival Aviva, replacing former boss Penny James, who left the company last year after it posted pre-tax losses of £45m, blaming the hit on soaring inflation, extreme weather and market volatility.
Direct Line said Winslow would focus on “refreshing the strategy and operational focus of the group with the clear objective of returning to a sustainable level of operating profit over time”. Winslow has attempted to revamp the company by cutting costs and increasing the price of insurance.
The average premium for a customer renewing a Direct Line policy is £505, up from the £480 listed last year. However, the cost for a customer buying a new policy has fallen from £588 in September last year, to £557 for the same point this year.
In March, the company was forced to fend off a £3.1bn takeover bid from its Belgian rival Ageas, saying the offer was “highly opportunistic” and “significantly undervalued” the company.
Winslow said: “We believe the steps we are taking will position the company for enhanced profitability and growth.”
Shares in Direct Line initially rose on Monday on the news of the cost-cutting plan but were later down 0.3%.
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