LONDON (AP) — UK insurance company Legal & General plans to cut as many as 560 jobs, a labor union said yesterday. The company, which has nearly 10,000 employees, confirmed that it was discussing some reductions with the union but did not confirm any numbers.

The Unite union said the cuts would come at the company's processing centres.

Rob MacGregor of the Unite union argued that the cut could affect the company's potential for recovery from the recession.

"The union is calling on the financial services sector to ensure that they do not simply take short-term decisions to cut staff, without consideration for future levels of service and their ability to recover from the recession," MacGregor said.

Legal & General Group PLC, Britain's third-largest insurer, reported a loss of £1.07 billion ($1.64 billion) in 2008, and has said that the current year will be difficult.

"L&G will keep any potential redundancies to a minimum and will try to find suitable alternative employment for staff affected," said Richard King, head of media relations at L&G.

"Potential redundancies are being driven by changing business demand, operational efficiencies, and the continued refocusing of the savings business," King said.