According to insiders, staff were notified of the cutbacks earlier today and were told that the marketing budget would be £100m for the 2008 fiscal year. The company confirmed that 140 staff will be let go by next January.
The insurer is also hoping to make further savings through a review of its marketing services agencies (Marketing 7 August). The insurance brand has told existing agencies to cut fees or risk losing the business, according to insiders. The UK's biggest insurer, Norwich Union had been in the midst of a pitch for its NU Life business, but that now hangs in the balance as the firm plans to draw up a roster of direct shops for its other insurance brands, including Motoring, Life, Home and Healthcare.
In a statement NU said: "Following a review of our marketing plans for 2008, we will be reducing our marketing budget and the number of roles across the marketing team by 140. We are operating in an increasingly competitive and changing environment and need to reduce the costs to our business."
For full story see next week's issue of Marketing.
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