A LEADING insurance company has axed its North-East sales team as part of a nationwide shake-up.

Axa Insurance announced 700 job cuts across the country, including 50 at the group's regional branch in Darlington.

All 300 staff at the Darlington office, on Beaumont Street, were called into a meeting at 2.30pm yesterday and told about the restructuring of the company.

Fifty staff have been told they will lose their job in the next nine months in the first phase of the cuts.

David Giles, from Darlington, who works as a security officer for Axa, said it was a sad day for the North-East.

He said: "People are absolutely gutted."

He added: "There were grown men in that meeting with their heads in their hands and tears in their eyes."

The job losses in sales are part of 220 positions being cut at sites in Darlington and Morecambe, Lancashire.

They come as Axa announced a major restructure by no longer promoting motor insurance and personal insurance.

Instead, the company aims to concentrate on core business-to-business activities - namely claims, sales and underwriting.

Peter Hubbard, Axa chief executive, said: "We very much regret having to reduce the number of people who work for us."

He said the company would continue to employ staff in Darlington to service and manage its customers.

A further 480 jobs nationwide, possibly including more at Darlington, will go through efficiency measures and plans to switch work to Bangalore, in India.

One worker, who wished to remain anonymous, said the news had come as a complete shock to everybody.

"People are very disappointed - a cloud of uncertainty now hangs over all our heads," said the 32-year-old.

"There are people older than me with families who will really struggle."