AROUND 300 jobs, including 118 posts in Basingstoke, look set to be lost at the AA.

The Basing View-based company has today announced that they have entered into a consultation with staff over plans to axe 300 head office jobs across the company.

This includes 118 jobs at Fanum House, in Basingstoke.

However, the company has said they will also create 50 new jobs as part of the plans.

President of The AA, Edmund King has told The Gazette that the figure includes 30 vacancies and 31 contractors meaning the remaining 57 jobs at risk are current posts at the Basingstoke office.

Mr King said the company is investing millions of pounds into a new IT system which will allow motorists who have broken down to find it easier to get in contact through the use of their smart phones and the AA app.

He told The Gazette: “This is the way the world is changing and the AA needs to keep up with it. Much of it is using technology to our advantage and investing in technology but it comes with a price so we have got to look at efficiencies at the same time.

“This is a difficult decision but for the AA to remain as the most trusted brand and breakdown organisation in the UK, we have to improve things. You have to make changes whatever business you are in, you can’t stand still.

“If we can do it by getting rid of vacancies such as open or temporary contractor posts then that is our preference.”

A statement released by the company said that no detailed plans have been finalised, but executives have been undertaking a review of the businesses since last summer.

It said: "The AA can confirm that it plans major investment in the business, in order to enhance the service it provides to members and customers, and to make reductions in staff numbers and related overheads in due course.

"The reduction would be drawn principally from administrative back office functions, but the AA also intends to hire more frontline roadside personnel. The objective of these plans is to ensure that the AA focuses its resources on its customers and members whilst operating as efficiently as possible."

AA executive chairman Bob Mackenzie added: "The AA's level of service is highly regarded, which is reflected in its status as the UK's most trusted commercial brand.

"It is our intention to continue to serve the needs of the motorists as comprehensively as possible."

A staff consultation exercise on the plans is expected to end on March 25. The AA will then hold discussions with their union, IDU, and their management forum to inform their decision.