700 UK jobs are to go as a result of the restructuring of Norwich Union’s life business services division.
The insurer said the move was necessary to further reduce costs and increase flexibility in response to changing market conditions.
Work done by the effected departments, predominately software development and application support, will be transferred to IT outsourcing companies.
In addition to the 700 jobs losses, Norwich Union will also cut 250 contract worker positions.
The insurer said it expected the majority of the redundancies to be compulsory, but it has set aside £1m to provide career advice and support for the affected staff.
Five Norwich Union life locations will be affected by the restructuring. It said it anticipated the following job losses in the following locations:
· Norwich 250
· York 150
· Bristol 150
· Stevenage 100
· Croydon 50
The 250 contract worker positions will be culled from the company’s sites in Norwich, York, Stevenage and Bristol.
Gary Withers, Norwich Union Life’s chief executive, said: “Decisions that affect staff in this way are never easy to make. However, recent market conditions in the UK long-term savings market have been tough and we have to ensure that the company continues its drive for efficiency.
“We will do everything we can to help and support staff during these challenging times and we will ensure they are kept fully informed throughout this process.
The restructuring is due for completion by the end of 2005.
