Britain’s largest car insurer Direct Line Group plans to cut 2,000 UK jobs in an effort to reduce operating costs. After announcing plans last year to reduce costs by £100 million a year by 2014, Direct Line Group has doubled its goal.

Direct Line Group has already cut 1,200 UK jobs; the new cost cutting measures could affect a further 14% of its 14,400 of its UK staff  across head office and support functions.

Direct Line Group was spun out of RBS last year as part of the government’s condition for bail outs, and comprises Churchill and Green Flag as well as Direct Line.

Chief executive Paul Geddes defended the cuts as part of the company’s ‘ongoing transformation’ and ‘an important part of our aim to regain competitive edge’.

He stressed: ‘We have not made these proposed changes lightly and understand the impact they will have on our people’.