STAFF at the Co-operative Insurance Services (CIS) office in Bolton are waiting to hear about their future after 2,500 job losses were announced by the company on Wednesday.

The CIS office on Churchgate employs 46 staff, with a mixture of roles including administration, sales and financial advisors.

No immediate details were given as to where the axe would fall over the next 18 months, but the Churchgate office may be in the frame as administration posts are cut in favour of 500 new 'customer facing' jobs, which the company also announced. Union leaders said that they expected the company's head office in Manchester to be hard hit. The CIS said that it was making the changes over the next 18 months to two years, under plans to modernise the service in a response to market and economic changes, and to ensure future profitability. CIS currently has around five million customers and employs 9,000 workers.

Mervyn Pedelty, Chief Executive of Co-operative Financial Services (CFS), said: "CIS has a strong reputation with its large and loyal customer base, an enviable level of customer trust and a robust capital position.

"It is not immune, however, from the intensifying economic and competitive pressures occurring within its core markets and we need to take action now to ensure a vibrant, successful and sustainable future for our business.

"By taking this action we will be better placed going forward to fulfil our Co-operative mandate."

David Fleming, national officer of union Amicus, said: "CIS is a good company, offering great products, but it has to move with the times to catch up with the leading players in the financial services sector. The proposed job losses are deeply disappointing to us, but reflect the difficulties all insurance companies face in a cut-throat market, burdened with ever-tightening regulation.

"Whilst we accept that CIS has to change and modernise, we will vigorously oppose compulsory redundancies, and we'll seek to maximise redeployment and retraining opportunities for those affected."

Dave McCall, regional officer of the Transport and General Workers Union, said the news of the cuts was "deeply disappointing" but he added that the company was working in a very tough, competitive and uncompromising market.

"The job losses are a hard blow. They appear to be the price to pay for bringing CIS up to date to meet the challenges of tomorrow. Our members in the district offices will be affected but we are committed to do all we can to look after their interests."

Meetings will be held over the next week between the company and unions to discuss the cuts.