BOSSES at the insurance arm of the Co-op today confirmed their site in Southampton could close with the loss of 39 jobs.

The office in Salisbury House, Vernon Walk, is one of 14 across the country facing the axe with 170 people facing losing their jobs.

The Co-operative Insurance Society (CIS) said the closure comes as it streamlines its UK operations.

Instead of 14 centres around the country, the smaller offices will close and be replaced with regional centres.

Leaders of union Amicus said up to 650 staff would be affected.

Regional officer Hugh Jones Glass said: "We will be unstinting in our efforts to redeploy as many people as possible and to equip them with modern skills in the new CIS.

"These changes will be difficult for our members, but they know that CIS has to modernise to stay ahead of a cut-throat market.

"We hope that through consultation with Amicus, CIS can deal with the process of change in a manner which reflects their Co-operative ethics and values.

"Amicus accepts that CIS has to make changes in order to modernise the business, and the union has been working with the company to try to retain experienced staff."

Offices expected to close include Southampton, Belfast, Edinburgh, Newcastle, Cardiff, Plymouth, Sutton and Maidstone along with Watford, Chorley, Leeds, Middleton in Manchester, Bristol and Glasgow.

CIS chief executive Paul Hewitt, said: "CIS already enjoys an excellent claims handling reputation and these proposals will ensure that we continue to provide a best of breed and fair claims service to all of our customers in the future.

"We will create centres of excellence where our staff will be supplied with the latest technology and given the scope to enhance and develop their careers with CIS.

"The decision taken to close our smaller offices is a reflection on the model we require going forwards for larger, more specialist teams.

"It certainly does not reflect the work undertaken in these areas, which we know has been of a high standard."

A CIS spokesman said they would discuss the closure with staff and the possibility of moving to remaining offices in Bury St Edmunds, Stoke-on-Trent, Nottingham, Rugby and Manchester.