Some 121 job losses at life and pensions company Royal Liver Assurance were announced yesterday as part of the company's plans to close its direct sales operations from September.
Royal Liver Assurance told staff that its decision was based on falling profit margins and long-term trends which demand face-to-face selling through the broker market rather than direct sales.
The company, based at Westland Park on Willow Road in Dublin, employs 550 people countrywide. It has a 5 per cent share of the life and pensions market in Ireland.
Following a strategy analysis during 2005 and earlier this year, the company took the decision to close its direct sales operations last month.
Staff were informed of the proposed redundancies this week.
The 121 staff affected by yesterday's announcement are employed as distribution managers and senior financial advisers, with their average length of service to the company believed to be just under 15 years.
A spokeswoman for the company said Royal Liver Assurance's existing customer service activities to its 300,000 customers, including home collections, would remain unaffected.
She added, however, that the company's new strategy would be to offer independent financial advice and access to a wide range of products through a new broker company.
"In an increasingly competitive market place, where the customer is seeking independent financial advice and greater choice, the broker channel is becoming more dominant."
The company indicated, however, that while it could not currently accommodate the 121 employees in other positions, opportunities for salespeople may exist in the new broker company, an application for which is currently with the financial regulator for approval.
Yesterday, John Dunne, insurance and finance branch organiser with Siptu, said 110 of the 121 people being made redundant were represented by the union and had been shocked to learn of the job losses.
"These are the people who are the face of the sales force, and now the entire direct sales operation force has been made redundant. These are the people who interact with customers on a daily basis, and the news of their redundancy has come as a major shock to myself and the members."