Type
Internal restructuring
Country
United Kingdom
Region
Wales;
Location of affected unit(s)
Cardiff
Sector
Administrative Services
Office Administrative, Office Support And Other Business Support Activities
Activities Of Call Centres
82.2 - Activities of call centres

223 jobs
Number of planned job losses
Job loss
Announcement Date
3 October 2012
Employment effect (start)
Foreseen end date

Description

AA insurance company has announced plans to cut 406 jobs at its call centre staff in Cardiff following a sharp increase in online transactions. The company will relocate its call centre activities to AA premises in Newcastle, where 183 new posts will be created. The relocation is partly blamed on the fact that the lease on AA's Cardiff premises expires in 2014 while the Newcastle office is freehold. The affected staff come from the company's car and home insurance division and are aged under 30.

AA has entered a 90-day consultation period with staff. According to media reports, trade unions characterized the restructuring as 'corporate greed', while representatives of the Welsh call centre industry forum stated that they would help affected staff find alternative employment in the local community.


Sources

  • 4 October 2012: Wales Online
  • 3 October 2012: BBC News

Citation

Eurofound (2012), AA, Internal restructuring in United Kingdom, factsheet number 74275, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/74275.