Home insurance and repairs group HomeServe is planning to eliminate about 300 positions across the group's operations in Bambury, Preston and Walsall in the UK, as it expects its customer numbers to decline over the next two years.
The company said that nearly 162 positions will be axed at its base in Walsall in the West Midlands, 20 redundancies will be made in Banbury in Oxfordshire and the remaining jobs will be cut in Preston, Lancashire, reported BBC.
The home emergency business is being investigated by the Financial Services Authority (FSA) over allegations of policy mis-selling to the customers.
The company, which had a customer base of 2.7 million last year, said that its UK customer base is likely to touch a low of 1.9 million by March 2014.
Due to sharp decline of customers, the company expects that its UK operations will contribute 35m less than expected during the next financial year; however it is planning to offset this decline through job cut savings of nearly 10m.
In a bid to thwart the decline in the businesses in the UK, the company is trying to increase its customer base in the US.
HomeServe, which markets cover for household emergencies including boiler breakdowns and burst water pipes, has a work strength of approximately 2,700 staff in the UK.
