Insurance group Direct Line is to close its Croydon office with the loss of 72 jobs. 

Some 24 permanent staff face redundancy when the company - founded in the borough in 1985 - moves operations in South End, South Croydon, to its headquarters in Bromley.

The remaining employees who will be out of work are contractors. 

The office, which houses part of the firm's IT development department, currently employs 240 staff. 

Only 168 of those - 124 of them permanent - will have the option of moving to Bromley, with the rest facing the axe. 

IT staff in Leeds and the City of London will also relocate to Bromley.

The closure comes amid nationwide organisation and cost-cutting at the insurance giant, which owns several brands including Direct Line, Churchill and Green Flag.

Around 2,000 staff - more than 14 per cent of its 14,400-strong workforce - face losing their jobs as the firm looks to reduce its spending by more than £200m a year. 

Chief executive Paul Geddes said that the cost savings were "an important part of our aim to regain competitive edge".

He added: "We have not made these proposed changes lightly and understand the impact they will have on our people."

Direct Line's first office, a call centre employing 63 people, opened in Croydon 18 years ago.