The insurance and travel provider said the business had been hit by the Covid-19 pandemic.
Up to 300 people are set to lose their jobs at Saga, the provider has confirmed.
A spokesperson for Saga said: “As part of our ongoing focus on improving efficiency within the business and against the backdrop of the continued suspension of travel due to Covid-19, we have started a process that will see a number of colleagues leave Saga. We appreciate this will be a difficult time for all of our colleagues and are focused on ensuring they receive all the support they need.”
It is believed that the majority of jobs affected will come from its travel division, but the insurance section may also be affected. However Saga did not provide a breakdown.
The business was already in the middle of an efficiency and cost saving operation and it is understood that this move is also part of existing efforts to save cost.
Saga stated in February that it is “looking at where performance and cost efficiency can be improved”.
The move followed the appointment of Euan Sutherland as CEO who replaced Lance Batchelor who retired in January.
International hedge fund Elliot took a stake in Saga last summer.
The business’s unaudited full year results for 2018 were released in April and showed broking, underwriting and travel profits plummeting.
Revenue at the group fell 5.2% to £797.3m for the twelve months ended January 2020 (restated 2019: £841.5m). Saga reported underlying profit before tax as £109.9m for the year (restated 2019: £180.1m).
However, losses after tax nearly doubled from £162.2m to £312.8m over the same period. Both years were heavily affected by impairments of goodwill in excess of £300m.
In 2017 the business said it expected 100 redundancies at its Folkestone HQ.
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