The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
North West; Greater Manchester; Greater Manchester North
Location of affected unit(s)
Sector
Financial Services Activities Auxiliary To Financial Services And Insurance Activities Activities Auxiliary To Financial Services And Insurance Activities 66.2 - Activities auxiliary to insurance and pension funding
2,500 jobs Number of planned job losses
500 jobs Number of planned job creations
Announcement Date
14 July 2005
Employment effect (start)
1 September 2005
Foreseen end date
31 December 2006
Description
The Co-op's insurance service is to cut 2,000 jobs by the endo fo 2006. CIS is one of the Co-op's largest operations, employing 9,000 staff. The headquarters in Manchester will lose 2,500 jobs in a restructuring designed to modernise the business. They will go over the next 18 months to two years, but at the same time 500 new customer service positions are to be created, it said. The CIS said it was responding to substantial changes in the market to ensure its future profitability. In recent years, it has been affected by increased competition in the financial services sector. It has also been slow to respond to a growing trend for consumers to buy financial products via the internet or telephone rather than directly from a financial advisor.
Following a comprehensive review of its business, CIS is to focus on enhancing customer service and improving the efficiency of its salesforce. It will also explore selling products from other providers. Unions representing CIS staff said they were 'deeply disappointed' by the scale of job losses proposed. The union USDAW said 'were very disappointed that a company that trades so heavily on its ethical policy should decide to take this sort of action'.
Sources
14 July 2005: BBC News
Citation
Eurofound (2005), Cooperative Insurance Services, Internal restructuring in United Kingdom, factsheet number 61962, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/61962.
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