Norwich Union is to axe 140 jobs as part of multi-million pound cuts to its marketing budget and the firm's 430 marketing department is to be cut by a third from the beginning of next year.

Norwich Union is to axe 140 jobs as part of multi-million pound cuts to its marketing budget and the firm's 430 marketing department is to be cut by a third from the beginning of next year.

The cuts come on top of the firm's on-going drive to trim 850 staff from its offices in the city by the end of this year.

Norwich Union's marketing department is based in Norwich, London, Perth and Bristol, but the majority of posts, 290, are based in its home city.

No decision has been made as yet as to where the axe will fall, but the cuts are likely to take effect from January next year.

The company argues an increasingly competitive market means it needs to cut costs and with the growth in business from the internet it has identified marketing as an area where it can make savings.

Liz Kennett, a spokeswoman for the firm, said: "We have reviewed our marketing plans for the next year and we have decided to reduce our spend. It's a very competitive environment and a changing environment and we do need to reduce our costs."

Management has started the process of identifying which roles will disappear.

Mrs Kennett added: "We are now working through the detail and how that affects the structure and people on an individual basis.

"The process takes quite a time to work through and we are consulting through staff forums."