Royal & Sun Alliance Insurance Group to cut 1,550 Jobs

Royal & Sun Alliance Insurance Group to cut 1,550 Jobs

Royal & Sun Alliance Insurance Group Plc is the second biggest non-life insurer in Britain and they have announced their decision to cut as many as 1,550 jobs, or about 6.1 percent of its workforce.

The aim is to cut costs and reduce overheads over the next two years as they struggle to survive in the competitive industry.

As many as 1000 of these job cuts would take place in Britain. This number represents 9.3 percent of its headcount in the country.

The company is targeting to reduce costs by another 130 million pounds through mid-2008. They have already reached a previously decided target of saving 270 million pounds this year ahead of schedule.

Royal & Sun is currently consulting with labor unions to reduce the number of compulsory redundancies.