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News : AA Set to Cut 50 Insurance Roles as 300 Posts Go
Newcastle, Wales, Feb 11, 2015 -- The AA has revealed plans to cut 300 posts from across the group.
This could include approximately 50 jobs being lost in its Newcastle call centre which employs 1,064 people and handles home and car insurance.
Approximately half of the 50 jobs are believed to be front-line positions.
The organisation expects that most of this change will be met through voluntary redundancies.
The AA confirmed that it is at the start of the consultation process which could yet change the situation as "no detailed plans" had yet been finalised. The outcome is set to be dependent on the results of management forum, staff and union consultations.
In addition the group stated that it intends to make a major investment in the business and that 50 new posts would also be created.
The overall reduction in headcount will be drawn principally from administrative back office functions.
Bob Mackenzie, executive chairman of the AA commented, "It is our intention to continue to serve the needs of the motorist as comprehensively as possible. Our plan is to strengthen the relationships we have with our 13m customers and members by offering an enhanced experience. In achieving this objective, there will be a benefit to all our stakeholders."
He concluded: "Regarding any redundancies we have begun engaging with our recognised trade union (IDU), our management forum and indeed our employees."
Posted by Veronica Silva Cusi, news correspondent
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More Editorial From Automobile Association
About Automobile Association:
The Automobile Association (The AA) is a British motoring association founded in 1905, which was demutualised in 1999 to become a private limited company which currently provides car insurance, driving lessons, breakdown cover, loans, motoring advice and other services. Following demutualisation the AA Motoring Trust was created in 2002 to continue its public interest and road safety activities. In 2007 the AA merged with Saga Group to form Acromas Holdings. Acromas listed The AA on the London Stock Exchange in 2014.
Published: Monday, February 16, 2015