On 3 August 2012 Direct Line Group announced initiatives to achieve £100 million of gross annual cost savings by 2014, including reducing administration costs in central functions and improving marketing efficiency.

Today the Group has announced the first phase of proposed initiatives which include the proposed redundancy of approximately 891 roles.

The first phase includes:

• In Sales, Service and Partnerships (SS&P) – a number of initiatives that will result in reduced costs and improved efficiency. These changes will also mean that significantly fewer consultants are needed to handle calls. As a result we have proposed the closure of our site in Teesside.
• In Commercial – proposals to reduce costs, largely in Head Office.
• In Chief Operating Office (COO) – a reorganisation of IT Application Development and Business Testing functions.

We have begun full consultation with affected employees and their representative bodies. We will continue to consult throughout the process, whilst mitigating the impact of redundancy through redeployment and identifying opportunities with other potential employers. We have first hand experience of successful redeployment and will do our utmost to help affected staff to ensure they have the best advice and assistance in seeking new opportunities.

Paul Geddes, Chief Executive Officer of Direct Line Group, said:
"We have not made these proposals lightly and fully understand the impact this will have on our people. As we have done in the past, we will be open and honest, dealing fairly and carefully with those affected."