Around 120 jobs are under threat at Direct Line Group’s Birmingham base after the insurance company announced further cost-cutting as part of a long-term plan to transform the business.

The firm revealed it was anticipating making 2,000 roles redundant nationwide, mainly involved in head office and support functions.

The Churchill owner also announced it was closing three UK sites in Liverpool, Croydon and central London by the end of the year.

It is consulting with staff over job losses across its 16-strong network of sites.

Jennifer Thomas, senior corporate communications manager at Direct Line Group, told the Post Midland jobs were at risk of redundancy at its Livery Street office in the city.

“They have got almost 800 people there at the moment and we are proposing about a 15 per cent reduction,” she said.

“As the group announcement stated these are mainly in head office and support areas as opposed to frontline, call centre, customer-facing roles..

“Consultation has started and though not represented by unions we have employee representative bodies.

“Each area of the business has their own representative.

“They will review all of our policies and proposals - which can run up to 90 days.

“They may challenge things and we will have a debate and discussion over the period.

“They are properly reviewing it and might they might suggest a different course of action.

“Once we reach the end of the process and things have been ratified we will engage in individual discussions.”

The group said it hoped to redeploy some of the affected 2,000 staff where possible and also find opportunities with other potential employers.

The job cuts - representing about 14 per cent of its 14,400-strong workforce - come as Direct Line announced aims to more than double its original cost savings target to over £200 million by 2014, or £130 million a year on a net basis.

Direct Line has already shed 1,200 jobs since last August under the cost-cutting drive and is shutting its Teesside call centre over the next week, as previously announced.

Nearly 500 staff work at the Liverpool site that is due to close, while around 240 are employed in Croydon and just under 400 at the London office earmarked to shut.

It hopes to transfer some of the Liverpool staff to Manchester, while a number of workers at Croydon and in London will transfer to its headquarters in Bromley.