Menu
04/09/2003
Royal & Sun Alliance to cut 1,000 jobs
Troubled insurer Royal & Sun Alliance is to axe a further 1,000 jobs as part of an “outsourcing” operation to trim back on running costs.
The company stated that the cuts followed on as part of a strategic review to “drive up” profits and has announced a rights issue in a bid to bolster its fragile position.
Where the axe will fall was not detailed in the company’s report - released today - but the focus of the review will be on the UK, Scandanavian and Canadian operations.
However, the report mooted a savings target which has increased to £270 million, a move that is expected to see at least 1,000 jobs go in the UK operation as part of the rationalisation. Jobs are certain to be lost at the company’s Horsham and Liverpool offices, as a programme of office closures continues to bite in the UK.
Last year RSA axed 1,200 posts as part of a cost cutting exercise.
Sun & Alliance Chief Executive Andrew Haste said: “In November 2002, we targeted around £95m of annualised expense savings in the UK and had achieved around £38m of that by the half year.
“We said that we aimed to halve the number of premises the UK business occupies. This programme is well on track with 40 of the 93 premises we occupied at that time now vacated with further premises closures expected. We also outlined plans to reduce staff numbers in the UK by around 4,800 within 18 to 24 months. This is expected to be delivered, ahead of plan, by the end of 2003.
“As part of the increased expense savings target we are now aiming for an extra £105m out of the UK substantially by the end of 2006 bringing the total annualised target to £200m.
The news of the expanded programme of cutbacks came as the company announced half-year profits had risen by 17% to £351 million, up from £301 million in the corresponding period last year.
Also announced today was the resignation of Royal & Sun Alliance's Group Finance Director Julian Hance.
It is understod that Mr Hance, who was with the company for five years and has overseen the rights issue and the implementation of the operational review, will get a golden handshake in excess of £1 million.
(SP)
The company stated that the cuts followed on as part of a strategic review to “drive up” profits and has announced a rights issue in a bid to bolster its fragile position.
Where the axe will fall was not detailed in the company’s report - released today - but the focus of the review will be on the UK, Scandanavian and Canadian operations.
However, the report mooted a savings target which has increased to £270 million, a move that is expected to see at least 1,000 jobs go in the UK operation as part of the rationalisation. Jobs are certain to be lost at the company’s Horsham and Liverpool offices, as a programme of office closures continues to bite in the UK.
Last year RSA axed 1,200 posts as part of a cost cutting exercise.
Sun & Alliance Chief Executive Andrew Haste said: “In November 2002, we targeted around £95m of annualised expense savings in the UK and had achieved around £38m of that by the half year.
“We said that we aimed to halve the number of premises the UK business occupies. This programme is well on track with 40 of the 93 premises we occupied at that time now vacated with further premises closures expected. We also outlined plans to reduce staff numbers in the UK by around 4,800 within 18 to 24 months. This is expected to be delivered, ahead of plan, by the end of 2003.
“As part of the increased expense savings target we are now aiming for an extra £105m out of the UK substantially by the end of 2006 bringing the total annualised target to £200m.
The news of the expanded programme of cutbacks came as the company announced half-year profits had risen by 17% to £351 million, up from £301 million in the corresponding period last year.
Also announced today was the resignation of Royal & Sun Alliance's Group Finance Director Julian Hance.
It is understod that Mr Hance, who was with the company for five years and has overseen the rights issue and the implementation of the operational review, will get a golden handshake in excess of £1 million.
(SP)
Related UK National News Stories
Click here for the latest headlines.
16 September 2003
£175m ploughed into deprived communities
A further £175 million has been allocated to assist in "revitalising" the most deprived neighbourhoods, Minister for Regeneration Jeff Rooker has said. The Neighbourhood Renewal Fund (NRF) money will be targeted on 26 local authority areas facing the greatest challenge to turning around long-term multiple deprivation.
£175m ploughed into deprived communities
A further £175 million has been allocated to assist in "revitalising" the most deprived neighbourhoods, Minister for Regeneration Jeff Rooker has said. The Neighbourhood Renewal Fund (NRF) money will be targeted on 26 local authority areas facing the greatest challenge to turning around long-term multiple deprivation.
01 April 2008
Committee Recommends Immigration Cap
A parliamentary inquiry has concluded that immigration should be capped. The House of Lords committee denigrated the notion that immigration is of benefit to the economy.
Committee Recommends Immigration Cap
A parliamentary inquiry has concluded that immigration should be capped. The House of Lords committee denigrated the notion that immigration is of benefit to the economy.
02 September 2004
Volunteers urged to enrol in 50-year breast cancer study
Tens of thousands of women are being urged to take part in a 50-year study designed to better understand the causes of breast cancer – a disease which kills around 13,000 women every year. Currently, around 40,000 women are diagnosed with breast cancer each year in the UK and around 35 women die from this disease each day.
Volunteers urged to enrol in 50-year breast cancer study
Tens of thousands of women are being urged to take part in a 50-year study designed to better understand the causes of breast cancer – a disease which kills around 13,000 women every year. Currently, around 40,000 women are diagnosed with breast cancer each year in the UK and around 35 women die from this disease each day.
08 April 2003
Go ahead given for extension to neutron facility in Oxfordshire
Work to harness environmentally friendly technology and develop medical applications received a boost today following a £100 million government award to the UK's leading neutron centre at the Rutherford Appleton Laboratory, near Didcot, Oxfordshire.
Go ahead given for extension to neutron facility in Oxfordshire
Work to harness environmentally friendly technology and develop medical applications received a boost today following a £100 million government award to the UK's leading neutron centre at the Rutherford Appleton Laboratory, near Didcot, Oxfordshire.
29 August 2003
Royal Mail first class reliability rises
First Class mail reliability has reached its highest levels since the summer of 1998, rising throughout the first quarter of the financial year to reach more than 93% in June. Figures released today for April to June show improvements to all Royal Mail services. First class quality of service rose throughout the quarter to reach 93.2%.
Royal Mail first class reliability rises
First Class mail reliability has reached its highest levels since the summer of 1998, rising throughout the first quarter of the financial year to reach more than 93% in June. Figures released today for April to June show improvements to all Royal Mail services. First class quality of service rose throughout the quarter to reach 93.2%.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
