AROUND 300 jobs could be lost when giant Norwich Union completes its reorganisation of a Sussex-based insurance company, The Argus can reveal.

Employees at the ITT London and Edinburgh head office in Worthing were originally told around 200 positions would go when the takeover was announced last October.

But a company spokeswoman admitted this figure may rise when a statement about its future is made next month.

Of 600 jobs expected to be shed by Norwich Union during the reorganisation, "the majority" will be at The Warren, Worthing.

But she stressed it was too early to set a final figure.

The first wave of job losses was announced yesterday when 59 staffwere told they will be made redundant on May 31.

This includes 39 employees from production services department, 16 from the marketing division and four employees from the firm's office management team.

Bridget McIntyre, ITT London and Edinburgh's managing director, said: "We continue to move quickly to make decisions on the future structure of the combined operation.

"We are committed to continue delivering high levels of service to our customers and intermediaries and I believe we are well positioned to do this."

Norwich Union took over ITT London and Edinburgh in mid-November in a £315 million deal and at once warned staff that some would face redundancy to cut out duplication and make annual savings of £30 million.

The deal made Norwich Union the biggest motor insurance company in the UK and the country's third largest insurer.

The company is planning to create 150 new jobs when a Ford Insurance customer call centre is created at The Warren.

A date for its opening is expected within the next three weeks.

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