Direct Line to axe 550 jobs in cost-cutting measure

Direct Line Insurance Group is set to cut 550 jobs as it looks to cut costs amid a turnaround at the insurer.

On Monday, the company reported that motor trading conditions have been "challenging" and reported a fall in third-quarter gross written premium and associated fees to £836 million compared with £1.28 billion a year ago.

As part of a cost-saving programme, a series of initiatives - including hundreds of jobs being axed - are projected to deliver "£50 million gross costs savings in 2025".

"Our drive to create a leaner and more efficient operating model is advancing, with consultations currently taking place as part of a proposed reduction of around 550 roles," the report reads.

Adam Winslow, CEO of Direct Line Group attributed the stunt in growth to "the early stages of a significant turnaround" and said "our Q3 trading is not yet fully reflective of the actions we have taken".

"We continued to grow policy count on price comparison website sand have worked at pace on the launch of the Direct Line brand in this channel."

He added: "We believe the steps we are taking will position the company for enhanced profitability and growth as we build on our strong foundations to become the customers’ insurer of choice."

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