Co-operative Financial Services (CFS) is to cut its workforce by approximately 1,000 by the end of 2007 as part of a move to slash costs by £100m a year.
The job losses amount to approximately 10% of employees at CFS and come three years after the division made 2,500 staff redundant.
Last year operating profits at CFS fell from £159.3m to £146.2m due to competition from supermarkets and online financial services.
CFS said in a statement: “A number of measures will be taken in order to achieve these cost reductions, but job losses are regrettably un-avoidable. CFS proposes to reduce its workforce by approximately 1,000 during 2007.”
It added: “Other cost savings will be made through improvements in supplier procurement and by simplifying business processes throughout the organisation.”
CFS plans to spend £250m to grow its retail and corporate banking and its insurance operations.
This will include a new website selling general insurance products.
Amicus said it would fight compulsory redundancies.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
