MORE than 100 workers at CPP face losing their jobs as the company continues to cut costs.

The troubled card protection and mobile phone insurance business, based at Holgate Park, employs 900 people in the UK, mostly in York. Most of the expected 120 redundancies will be in York.

Employees across the business face the axe and the news follows an announcement, previously reported in The Press, that senior directors, including chief executive Paul Stobart, chief financial officer Shaun Parker, are to leave the business as part of a restructuring programme.

Shaun Astley-Stone, York-based managing director for the UK and Ireland, who took over on an interim basis in August last year, will also leave as part of the restructuring.

Mr Stobart said when he announced the restructuring programme: “I have no doubt that the way we do things at CPP have changed very much for the better, and I know that in our people the business has a very strong base from which to move forward.”

The company said it was committed to York, which remains its global headquarters, but the business needed to continue to reduce its costs substantially in line with its changed circumstances.

A lengthy investigation into mis-selling by the Financial Services Authority, now the Financial Conduct Authority, between March 2011 and November 2012, led to the loss of key contracts with Barclaycard, RBS and T-Mobile.

The company was then hit with a £10.5 million fine and in April it revised up the estimated cost of repaying customers to whom it had mis-sold products to £51.7 million.

In its annual results for 2012, CPP revealed losses of £19.9 million, after making profits of £11.9 million in 2011 and revenues reduced from £300 million to £269.9 million.

Business is down a further 25 per cent between January and May this year, compared to the same period in 2012, it said.

Last month, the company sold off its North American business for £26.1 million to pay back part of its £40 million debt to its banks. It is currently trying to produce a leaner company which could be taken back into private ownership by its founder and majority shareholder Hamish Ogston.

CPP reduced its workforce with more than 100 voluntary redundancies in March 2012, losing a further 50 jobs in York in February, following the loss of the RBS contract.