Admiral, which is headquartered in Cardiff, has started a 45-day consultation with affected employees.
The proposed reduction forms part of a restructuring programme that will cut headcount in the division by about five per cent. It is linked to £100 million in cost savings announced earlier this year, although the insurer said trading remains strong.
Nearly 10,000 people work across Admiral’s UK insurance operations. Around 6,700 are based in Cardiff, while just under 2,000 work in Swansea.
That means South Wales could face more of the impact than any other part of the UK.
The company said it was too early to say how many reductions could be made through voluntary departures or whether compulsory redundancies would be needed.
The consultation will last 45 days, with further details expected to emerge about which teams and roles are affected.
Admiral is Wales’s only FTSE 100 company. It is also one of Cardiff’s largest employers. Its offices in Cardiff and Swansea support thousands of local households.
The plans have prompted concern about the effect on the regional economy, particularly because the company employs so many people in South Wales. Trade unions and politicians are expected to follow the consultation as it continues.
In a statement, Alistair Hargreaves, chief executive of Admiral UK Insurance, said changes were being proposed because customer expectations were changing and the business needed a simpler way of operating. He said the aim was to create a faster and more efficient organisation while continuing to provide strong outcomes for customers.
He also said Admiral recognised the uncertainty for affected employees and would support colleagues throughout the consultation.
Staff affected by the proposals will receive enhanced redundancy terms and other support.
Measures include redeployment where possible, funding for professional qualifications and training, and help for employees who want to start businesses. Some workers could receive up to £10,000 towards launching a new venture, alongside mentoring support.
Admiral said the cuts were not linked to artificial intelligence. The company uses AI in parts of its business, but said the technology was not responsible for the proposed reductions.
It said the restructuring would reduce complexity and prepare the business for future challenges.
The consultation is expected to clarify the proposals and whether compulsory redundancies will ultimately be required.
