Two hundred employees at UKI Partnerships, the affinity arm of RBS Insurance, face the threat of redundancy in a review of the

company's operations.

It is understood that managers, line managers, planning and training staff in regional offices in Ipswich, Nottingham and Leeds are in the firing line.

A source close to UKI said 200 staff had been informed of the company's plans and that as many as 100 could be made redundant. The source suggested that the review was being made as part of a "cost-cutting exercise" to increase profits.

He added: "They are looking to increase the reporting level in call centres from 10 people to every line manager to 12, which will obviously give them a cost saving."

A UKI spokesman refused to confirm the number of likely redundancies saying it was "not fair to speculate".

He said UKI had decided to "review a small number of operational roles to maximise existing resources and support stability and long-term growth".

Details of these changes were shared with employees last week.

Rob Macgregor, National Secretary for Amicus, Britain's biggest private sector union which represents 10% to 15% of the staff potentially affected by the company's proposals, said it was still "early days" in terms of its discussions with the UKI.

But he added: "The consultation process with the company will be beginning shortly and we will be expecting no compulsory redundancies."

The UKI spokesman said: "As ever, our aim will be to minimise any disruption to our employees, our customers and our business generally.

"We understand that this is a period of uncertainty for some employees, however, we will be making every effort to move forward as quickly as possible to keep this to a minimum."

UKI currently employs around 4,000 staff. Its partner portfolio includes Lloyds TSB, Tesco Personal Finance, Help the Aged, Prudential and Nationwide.