Workers at Royal & SunAlliance in Horsham said they had feared the insurance giant would axe Sussex jobs.

The company, which employs about 1,700 staff at its Horsham offices, confirmed it had briefed all its workers about the 200 job cuts yesterday.

The cuts affect those working in the company's UK life and pensions operation.

A worker, who did not wish to be named, said: "I know in our area we had an idea it was coming because we had heard rumours something was happening but we didn't know when it was happening.

"In our area we have gone through so many situations where we have thought we were going to go but then we haven't.

"I would have thought most people were aware something was going to happen at some stage. I don't think the mood is overly happy."

The worker said she feared the company was going to continue transferring work to its Liverpool offices and Horsham staff would lose out.

The group revealed yesterday it was cutting 1,300 jobs in the next 18 months across the UK.

News of the cuts came as the group announced a slump in profits, cut its dividend to shareholders and said it might have to raise more capital to fund growth in its general insurance business.

A spokesman for the Horsham offices said: "At least 50 per cent of those jobs relate to projects that were coming to an end anyway.

"Apart from those on holiday or off sick, everyone has been fully briefed.

"Over an 18-month period we will seek to redeploy as many of the staff in other departments where there is natural wastage from people leaving.

"We will do all we can to make sure the staff get jobs in other departments or with other local firms."