AA And Saga Defend Mass Job Cull Claims

Saga and the AA insurance have fiercely denied claims made today by the GMB that they could be poised to lay off around 2,000 staff in the coming months, as a result of slimming down from the recent multi-billion pound merger.

The claims made by the GMB put over 2,000 jobs at risk from a commitment to streamlining off the back of the £6.15 billion move that will see both companies owned by a single holding entity. However, executives from both the AA and Saga have strongly denied the claims, suggesting that it is their intention to grow both brand individually rather than focus on stripping bear one or other of the companies.

It had been suggested in recent days that Saga would emerge to be the dominant party in the merger, with many high profile AA executive staff leaving their positions, only to be filled by internal promotions from within Saga.

However, despite some industry scepticism, the official line remains that both brands are to stay in their own right, and that the move is more of a merger to promote additional cross-selling opportunities, rather than to create a new ‘super’ insurance group.

The merger was proposed several months ago, but stalled as a result of issues with raising capital and on the legal side. However, the move was finally completed earlier on in this week, coinciding with mysterious departures of a handful of top AA executives.

Additionally, the AA chief executive has also announced it is his intention to stand down alongside his management colleagues when the dust settles on the merger arrangement.

The move will see Saga customers opened up to insurance products from within the AA’s current insurance range, whilst the AA’s existing customer base will receive targeted cross promotion from Saga. Additionally, it is hoped that both can leverage the increased asset base to expand their brands and develop their market share.

Category: AA Insurance News, Employment News, Insurance News