Motor insurer to focus on Newcastle operations as 90-day consultation period is started

AA Call Centre

The AA is expected to cut 400 jobs at its insurance call centre in Cardiff as more policyholders go online.

The AA said it would be focusing its call centre activity in Newcastle and would move its Cardiff site to smaller premises within two years. A 90-day consultation period has been started.

But the AA and BSM driving school businesses will be retained, with about 150 jobs staying.

The AA said in a statement: “The net loss is likely to be made up of about 406 roles in the Cardiff contact centre with future insurance call centre activity being focused at the AA-owned Newcastle office, where 183 new jobs are expected to be created.

“However, the Cardiff-based AA Driving School and BSM activities will be retained along with some other core functions, preserving about 150 jobs.”

“Changes in the way that people buy and renew insurance - particularly the sharp growth in online transactions, resulting in fewer purchases made by telephone through conventional call centres - has led the AA to consider the way it looks after its customers through all of its road and insurance call centres, as part of a UK-wide review.”

Last month, private equity firm Acromas, the AA’s parent company, said its backers were considering their options amid talk that it is planning to spin off the AA division through an initial public offering.

The latest cuts are expected to see a net reduction in the company’s UK call centre staff by about 317 employees.

The AA employs just under 3,000 in its call centres.