Type
Relocation
Country
United Kingdom
Region
Location of affected unit(s)
Maidstone, Kent (South East) Cheadle, Cheshire (North West)
Sector
Retail
Wholesale And Retail Trade And Repair Of Motor Vehicles And Motorcycles
Wholesale And Retail Trade And Repair Of Motor Vehicles And Motorcycles
45 - Wholesale and retail trade and repair of motor vehicles and motorcycles

280 jobs
Number of planned job losses
Job loss
Announcement Date
24 June 2005
Employment effect (start)
Foreseen end date

Description

The AA, the roadside recovery organization is to cut 280 jobs by closing one of its offices and transferring work from another. An office at Maidstone, Kent, which employs 154 staff answering emergency breakdown calls, will close. Administrative work will transfer from Basingstoke, Hampshire, to Cheadle, Cheshire, leading to around 129 job losses.

The AA also announced it was to keep its roadside and insurance call centre operations in Britain rather than switching the work overseas, even though it could save £50 million by offshoring. A study had found that 'significant savings' could have been made if the call centre work had been moved offshore. But the AA said it believed it could improve customer service and the efficiency of its operations by remaining in the UK. Around £10 million will be invested at the AA's insurance call centres in Newcastle and Cardiff.


Sources

  • 24 June 2005: The Guardian

Citation

Eurofound (2005), AA, Relocation in United Kingdom, factsheet number 61786, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/61786.