LONDON, Sept 5 (Reuters) - Direct Line Insurance Group plans
to cut almost 900 jobs as part of a cost-saving plan to make it
more profitable as it plans for a stock market listing, possibly
as soon as next month.
Britain's largest motor insurer, a unit of Royal Bank of
Scotland with brands including Churchill and Green Flag
as well as Direct Line, said on Wednesday it planned to make 891
staff redundant in the first phase of a cost-cutting plan.
The company said last month it was seeking to save 100
million pounds ($158.9 million) a year by the end of 2014 by
reducing administration costs in central functions and improving
marketing efficiency.
The first phase will include the closure of its call centre
in Teesside, northeast England, as it needs fewer staff to
handle calls, the company said in a statement. It also plans to
reduce costs at its head office in Bromley, southeast London.
Direct Line said it had started consulting with affected
employees and unions as it steps up plans to improve efficiency
ahead of the planned share sale.
The company aims to list in coming months, possibly in
October, and analysts say it could attract a stock market
valuation of about 3 billion pounds, making it one of London's
biggest listings for years.
