Twelve hundred jobs to be cut by insurance giant

The ongoing recession in the UK has brought with it many job losses, and many have already lost their jobs over recent months with many others facing an uncertain future with regards to their jobs.

Many major firms and retailers have gone into administration, and every week scores of small businesses are going bust because of the financial crisis and recession. The job losses have hit many different areas of industry, from banking and retail to insurance, building, and more.

One insurance giant has recently confirmed that over the coming year it will also have to lose many employees.

Royal Sun Alliance is one of the biggest insurance companies in Britain, but having also been affected badly by the current financial and economic climate it has announced that over the next year or so it will have to look at shedding some twelve hundred jobs. It aims to cut these jobs by the middle of next year, which means that many more people will join the ranks of the unemployed, adding to the soaring numbers of jobless people.

The insurance giant is hoping to deliver a £70 million saving by the middle of next year, and one official from the company said: “We expect to face challenging conditions but are confident of delivering sustainable profits.”

However, union official are disappointed, and one Unite spokesperson said: “We have been involved in consultation with the company and both parties remain committed to mitigating the consequences of this decision. Our immediate priority is to communicate with our representatives and members. We will oppose any compulsory redundancies.”

RSA also said: “I see exciting opportunities to continue to build and grow RSA. But key to this will be reducing our costs. The healthier our expense base is, the more competitively-priced our products and services become. Decisions like these that affect our people are always difficult, but it is the right thing for our customers and our business. Every support will be given to our colleagues to assist them finding new roles, either within the business or with other companies.”

Tags: consequences, Many major firms, job losses, RSA Insurance Group, insurance job losses, insurance jobs, support, bust