Profit-rise insurer to axe jobs

Feb 27 2009 by Graeme King, The Journal

JOBS could go at the Sunderland call centre of insurer Royal Sun Alliance (RSA) despite an increase in annual profits.

RSA’s More Than business employs 640 people at Doxford International Business Park on the south west edge of Sunderland.

They are part of an 8,800-strong UK workforce, with the main offices in Liverpool, London and Horsham in Sussex.

Job losses are expected to be spread across the company and at all levels and will take effect over 15 months.

The planned cuts were announced despite RSA posting pre-tax profits of £759m, up 13% in the 2008 calendar year.

A spokesman said about 260 posts had already gone and another 300 were expected to be lost through natural wastage. RSA said it had given a commitment to the Unite union that it would try to minimise redundancies.

Chief executive Andy Haste said: “In a year of challenging trading conditions and volatile investment markets, we have again delivered strong results.

“We expect to face challenging conditions but are confident of delivering sustainable profits.”

Unite said it would oppose any compulsory redundancies and was talking to RSA about easing the impact of the company’s proposed cuts on staff.