Axa UK set to axe 500 staff members as it reorganises business model

Axa UK has announced that 500 jobs are to be shed across the firm, as it implements its new business model.

To help drive future growth, Axa UK is restructuring the company's business model which will result in 500 jobs being lost in support services and other divisions. This figure was previously estimated at 100.

In a statement, Axa said: "The company will manage the process with sensitivity to limit the number of compulsory redundancies where possible by focusing on reducing headcount through natural attrition, redeployment and more efficient use of contractors."

Through the reorganisation of the company it expects to make a combined annual saving of £80m in three years.

Nicolas Moreau, group chief executive of Axa UK, said: "The developments we have outlined signal our intent to improve continually our effectiveness and efficiency to ensure that the business model is well prepared to withstand changing market conditions, as well as our determination to provide customers with tangible service excellence."

The firm also reported its first-half underlying earnings were up 14 per cent to £183m in the first half of 2008 on the back of growth in protection and pensions business.

UK health revenues saw strong growth up 9 per cent to £585m in the first half of 2008 from £537m in the first half of 2007.

Mr Moreau added: "Conditions in many property and casualty sectors remain challenging and show little sign of improvement in the short term.