Over a third of workforce must be cut to save company

The administrators in charge of Quinn Insurance are expected to spend the next two weeks processing more than 900 applications for voluntary redundancy by staff.

Grant Thornton’s Michael McAteer and Paul McCann will determine how many of the applications qualify for the redundancy package set out at the end of April. The joint administrators will then report back to employee representative committees.

Last week, Quinn Insurance chief executive Colin Morgan confirmed he was stepping down from the business, after Insurance Times reported that the decision was imminent.

Morgan said in a statement: “After almost seven years here, I have decided to leave Quinn Insurance. This has been a very difficult decision to make, but given the changes that have occurred in recent months, I feel it is an opportune time for me to pursue other opportunities.

“I have enjoyed the successes and challenges at Quinn Insurance and firmly believe that this business will recover from its current difficulties and, in some form or other, go on to achieve long-term success."

The rest of the Irish insurer’s senior management have held redundancy talks with the administrators and a decision could be made this week.

The job losses represent around 37% of the insurer’s 2,450-strong workforce. Quinn has said the job cuts would be carried out over a 15-month period up to mid-2011.

The firm hopes to make annual cost savings of €30m (£25.7m).