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Your Money: AA STAYS BUT 100 JOBS GO.

Byline: EDITED by CLINTON MANNING

THE AA has reversed plans to move its call centres to India, despite potential savings of pounds 24million.

But the price of keeping operations in the UK will be at least 100 job losses at centres in Newcastle and Cardiff.

The cuts - one in 10 of the workforce - will hit management and administrative jobs.

Kevin Sinclair, managing director of AA Insurance, said the firm had "seriously considered" shifting the work to India as many other insurance firms have done.

But it decided to keep operations in the UK and spend pounds 8m on phone and computer systems.

"The insurance market has become very competitive," said Sinclair.

"It's vital we reduce costs and improve efficiency. We can't be certain of numbers - this will become clearer as restructuring takes place and our discussions with the union and staff continue."

The AA is hoping to make the cuts through voluntary redundancies with the first jobs going in November.

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CULL: AA cost-drive
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Title Annotation:Business
Publication:The Mirror (London, England)
Date:Aug 19, 2005
Words:165
Previous Article:Your Money: Stockwatch.
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