The AA said the company needed to reduce costs

The company said the jobs would be lost mainly in management and administrative roles as it seeks to reduce costs.

Voluntary redundancies would be sought over the coming weeks with the first jobs to go in November, the AA said.

The GMB Union, which represents a number of workers at the centres said it believed the job losses were the "thin end of the wedge".

'Reduce costs'

The AA, which is owned by two private equity firms following a �1.75bn takeover last October, announced the job cuts on Thursday.

Currently, the AA employs about 1,000 staff at Newcastle and about 650 in Cardiff.

The company said it had seriously considered moving its call centre operations to India, but would instead invest more than �8 million on new information technology and telephone systems at both of the centres.

Kevin Sinclair, managing director of AA Insurance, said: "The decision to keep our call centres in the UK is good news for customers, who will enjoy improved service and we will invest in the vital technology our staff use when customers buy insurance from us or make claims.

The jobs will be lost at call centres in Cardiff and Newcastle

"It's vital we reduce costs and improve efficiency. At this stage we can't be certain of numbers - this will become clearer as restructuring takes place and our discussions with the union and staff continue."

But Paul Maloney, GMB national secretary with responsibility for GMB members at the AA said: "I can't believe that the AA are about to announce a further slice of job losses at the Newcastle upon Tyne and Cardiff call centres.

"I believe that the figures the company will announce of between 100 and 150 jobs is not the full picture but is the thin end of the wedge.

"The AA will claim that it's mainly senior jobs that are going but the GMB does not consider that this slice of cuts is the end of the story."