Over 400 insurance jobs under threat in Coventry

MORE than 400 jobs are under threat after insurance company Friends Life announced proposals to close its operation in Coventry.

Friends Life, which was formed in September following a merger of the UK operations of Friends Provident and the life assurance businesses of Bupa and Axa UK, occupies the Axa Building, in Corporation Street, and offices in nearby Chapel Street.

A total of 428 staff from Friends Life are now in a consultation period with the company. A further 135 people from Axa Wealth and supply organisations work in the same building but it is unclear what will happen to them.

A company statement said: “The planned development of a new low cost operating model for the company’s life assurance business to support its future strategy in the market means the operational facility at the company’s Coventry office will no longer be needed.

“Staff have been advised of this proposed decision at a series of meetings. Some staff will be offered redeployment opportunities at other Friends Life sites where this is possible.”

The statement added the changes were likely to come into effect in the first half of next year.

David Hynam, executive director operations at Friends Life, said: “This has been an extremely difficult decision to make and we are very mindful of the impact on our people in Coventry. We will do all we can to help them through this period.”

Alan Durham, policy director at Coventry and Warwickshire Chamber of Commerce, said: “This is extremely disappointing news. From an economic point of view, this has been a significant employer in the city for some years and it will be a major loss to the city centre and the region.

“What we must do in the next few days and weeks is look at ways that we can absorb this blow.

“It acts to bring into focus why the barriers to growth and taking on staff must be removed.”