HUNDREDS of jobs at one of the area’s largest employers could be axed, it has been announced.

Zurich Insurance, which employs about 500 staff at its Southwood Business Centre offices in Farnborough, said on Friday that between 700 and 900 people from its total UK workforce of 5,400 will be sacked before the end of the year.

The job cuts come as the credit crunch continues to take its toll on providers of financial services.

Susannah Mogg, a Zurich spokeswoman, said that the prospect of whole site closures could not be ruled out.

Managers at the Southwood Crescent centre held a meeting with staff on Thursday to announce the changes. A 90-day consultation period will be held with unions and staff representatives before any further decisions are made, she said.

Guy Munnoch, chief executive of Zurich UK, said in a statement: “We recognise that there are difficult times ahead for our people.

“However it is clear that if we want to remain competitive, we must act swiftly to increase efficiencies, so that we can achieve our growth plans and safeguard the future of our business in the UK.

“Unfortunately, this means tough decisions have to be made and we will be reducing our headcount. We remain, as always, committed to engaging with our people throughout this process.”

The company said that all aspects of the business would be reviewed, including processes, technology, people and locations across the UK.

Tough market conditions in the market and “intense competition” amongst insurers had led to a decision to make a 10% reduction in costs, the company said.

It added that the decision “will allow Zurich to position itself to take advantage of more favourable market conditions in the future”.