LIVERPOOL financial services group Royal Liver Assurance is axing jobs in a restructuring exercise that has already seen the departure of chief executive Steve Burnett.

Mr Burnett left the Pier Head-based firm last week, after seven years modernising the company.

However, a new review which will lead to cuts at two of Royal Liver’s four operations led to his departure.

Chairman and temporary chief executive David Woods said: “The board has decided that this is an appropriate time for a change of leadership to meet the new challenges facing the society.

“Accordingly, Mr Burnett has elected to leave the business.”

The shake-up at the 159-year-old business has already led to the outsourcing of its IT functions, with 73 staff transferring to ATOS, a specialised provider of computer services. Around 10 will remain within Royal Liver.

Mr Woods said the move is expected to save the society £20m over 10 years.

As part of the strategic review, the society said Progress, its online provider of insurance and financial products, and Irish counterpart Caledonian Life, will form the core of Royal Liver’s operations.

But the future of Leeds-based financial advice arm Park Row and its Irish counterpart Citadel are currently under consideration.

A Royal Liver spokeswoman said: “For Park Row, a range of options are being considered and a conclusion will be reached shortly.”

She said 29 jobs at Dublin-based Citadel have already been axed: “A consultation process with employee representatives will commence mid-September regarding collective redundancies.”

The society’s latest figures revealed that both Park Row and Citadel had posted losses in the six-month period to June 30. Park Row was £2.17m in the red and Citadel turned in a group loss of 1.77m euros.

Overall, the society recorded a £90,000 deficit, its first loss in two years, but which was £2.6m better than forecasts, said Mr Wood.

He revealed that a variety of cost-cutting measures have been put in place, including the ending of door-to-door collections in the UK and Republic of Ireland.

Actions by former chief executive Mr Burnett had managed to cut a £28m deficit in 2002 into a shortfall of £8m in 2006 and small surpluses for the following two years.

But Mr Woods explained: “The first half of 2009 has seen the key markets for our products and services buffeted by the continuing fall-out from the financial crisis and ensuing economic turmoil.”