Direct Line has confirmed it is to cut 2,000 jobs in the UK in a bid to reduce the firm's costs.
It announced it is now aiming to save more than double its original target of £100 million a year and consultations have already started with staff and unions over redundancies.
Chief executive Paul Geddes explained cost savings have to be made by the company if it is to be able to remain competitive within the insurance industry.
"We have not made these proposed changes lightly and understand the impact they will have on our people," he added.
Staff across the firm's head office are likely to be affected by the job cuts, while those in support functions could lose their positions as well.
Investors responded strongly to the news Direct Line is looking to aggressively cut costs, with its share price up this morning (June 26th).
Its stocks were trading at 227.00 at 08:44 BST this morning, up 3.5 per cent for the day.
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