DIRECT Line has announced plans to cut 70 "senior leadership" roles in a move that will involve the group parting company with chief operating officer Jonathan Davidson.
Two weeks after floating on the stock exchange, the insurance company said Mr Davidson had decided to leave the Royal Bank of Scotland-owned organisation following a decision to streamline the business.
Sheree Howard, who has been leading work connected with the EU's Solvency II regime, has also decided to leave the organisation as part of the changes to the leadership team.
The company said these formed part of a programme to save £100 million annually, unveiled last month. However, the latest job cuts are in addition to the 900 Direct Line announced then.
Mr Davidson and Ms Howard are members of the 13-strong executive committee that has been leading the company's preparations for life as an independent in a competitive industry which faces big regulatory changes.
Asked if either would receive any compensation, a spokesperson for Direct Line said: "They have decided to leave so I can't discuss any specifics about them."
The two are leaving in a cull of the senior leadership team that helped lead the work required to separate the business from RBS Group and prepare for an initial public offering.
Royal Bank sold 30% of Direct Line's shares this month as part of a three-stage programme to offload the company. This has to completed by the end of 2014 to address concerns EU regulators have about the £45 billion bailout Royal Bank received from the UK Government in 2008.
Paul Geddes, chief executive of Direct Line, said: "Following the successful completion of our separation from RBS Group and our recent IPO, the timing is now right for us to make these changes. We are creating a simpler, more efficient business which costs less to run."
Bromley-based Direct Line said the posts of two people who live in Scotland but work across the UK were among those that would be affected. No posts based full-time in Scotland would be affected, it said.
The cuts will involve an unspecified number of compulsory redundancies. Staff in the company's Scottish call centre, on Cadogan Street, Glasgow, are still waiting to see how they will be affected by the changes announced last month.
The company said it would close a call centre on Teesside with the loss of around 500 jobs.
A further 400 jobs would be shed at 15 centres including Glasgow.
Direct Line employed 15,000 when the changes were announced. A company source said at the time the cuts would have a low impact on the Glasgow centre, where around 970 people are employed.
The company is still in a statutory consultation period with staff.
Shares in Direct Line closed down 2.25p at 190.25p.
Earlier this month Royal Bank raised £787m by selling 450 million shares at 175p. The IPO valued the company at £2.6bn.
Direct Line said: "Angela Morrison, Chief Information Officer, will now report directly to Paul Geddes and will join the Executive Committee.
"Key elements of Solvency II activity have been embedded in the Finance and Risk functions with Jose Vazquez, Chief Risk Officer, being responsible for oversight of the remaining elements. Elements of the Chief Operating Office have been devolved to other business functions."
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