Want Stoke-on-Trent news emailed to you direct from our journalists? Sign up to our newsletter Subscribe Thank you for subscribing See our privacy notice Invalid Email

Full details of redundancy plans by insurance giant Ageas have been revealed in a leaked document.

Bosses delivered the bombshell news that the Stoke-onTrent office is to close with the loss of 388 jobs during a briefing at the firm's Trentham Lakes call centre yesterday.

Employees were told that the office will shut in June, 2020 and a staff consultation is now underway.

The company - which traces its roots back to 1824 - has blamed its decision on online competition and increased technology.

Now a leaked document, sent by UK chief executive Andy Watson to staff, has revealed the thinking behind the closure.

It also details plans to downsize and move its London office and seek an alternative Manchester base.

Mr Watson explains that Stoke-on-Trent and another base in Port Solent were chosen for closure as those sites are leased whereas the company owns three offices at Eastleigh, Bournemouth and Gloucester.

Of the other two rented offices, Mr Watson insisted London was important due to its strategic location, while Manchester's workers have 'specialist skills'.

The document, seen by Insurance Age, reads: “Over the last few years, the number of people in our business has reduced. This is due to a combination of factors: we’ve responded to the changes in customer behaviour such as consumers increasingly choosing to buy and service policies through digital channels.

“In addition, we’ve simplified our business to remove complexity, and invested in technology, to make us more efficient and ensure that our premiums remain competitive.

“Our business plan projects that these trends will continue into the future, and while our ambition is to grow the business, we expect customers’ digital expectations to continue to accelerate at an even greater pace.”

The document also pointed out that the seven office structure the provider currently has is largely due to legacy from previous acquisitions. He reflected that the current structure is more complex, less automated and more telephone-based than is now required.

He added: “This situation is further compounded by the necessary steps we have taken to restore profitability in the partnerships channel.”

It added that Ageas has 'too much office space' and had to reconsider its needs as part of a multi-year budgeting process.

Mr Watson continued: “Of our seven operational sites across the UK, we own three: Eastleigh, Bournemouth and Gloucester and the others are leased on various different terms and expiry dates.

“It makes sense for us to prioritise the sites we own, and the longer-term plan is to consolidate our operations into Eastleigh, Bournemouth and Gloucester, our core sites, where we will create larger, more effective teams. We will also retain two leased offices in London and Manchester.”

The communication also outlined plans to reduce the size of its London base and seek a new site in Manchester.

Mr Watson stated: “In London, the lease on our current office space at America Square comes to an end in September 2019. It remains important for us to retain a leased office in London (albeit with a smaller footprint) due to its proximity to our partners, brokers and other external stakeholders.

“It will also enable us to access a pool of specialist skills that would otherwise be difficult to recruit for.”

Ageas hopes to confirm a new base later in 2019.



Its Manchester office will also see changes.

Mr Watson said: “Manchester also remains an important location for us, largely due to the specialist skills based there.

“We will, therefore, retain our current leased office until its expiry, when we will look for an alternative site in Manchester.”

It is understood that Ageas is not planning to reduce staff numbers in either London or Manchester.

In addition the restructure will see the closure of the Eastleigh-based sale and service operation from April 1 2019.

The plan is to consolidate this arm of the business into its Gloucester site with all business transferring from June 2020.

Mr Watson said that he felt 'regret' at the impact the developments would have on some staff but insisted the changes were 'necessary' in order to create a sustainable business.

He said: “If we ultimately have to let people go as a result of any of our proposed changes, we will work with the relevant bodies to provide the support our people need through what we understand could be a difficult time.”

Mr Watson concluded: “Finally, although in any business you can never rule out further change, I can conclude by saying that there are no plans to implement in 2019 any further changes of the scale and significance that we have shared today.”

Want to tell us about something going on where you live? Let us know - Tweet us @SOTLive or message us on our Facebook page . And if you have pictures to share, tag us on Instagram at StokeonTrentLive .