Salesmen shown door at Friends
LIFE assurer Friends Provident, down 3/4p at 130 1/4p, confirmed it is scrapping its direct sales force, affecting 500 jobs.
Some 150 of the former sales staff are in talks with Friends to become self-employed sales representatives. The group said the job cuts come after 'extensive and constructive' talks with staff and Amicus, the trade union.
Friends, led by chief executive Keith Satchell, will concentrate on selling through independent advisers, self-employed reps and partnerships with other financial organisations.
The changes will cost £17m this year, but are expected to result in savings of £18m a year from 2004.
The Prudential, Pearl and Britannic are among other big-name insurers that have dumped their door-to-door sales people. The trend is are driven by a need to cut costs and by changes to the way sales of insurance products are regulated.
