Lombard International Assurance SA has entered into the next phase of discussions concerning the axing of 89 jobs in Luxembourg.

The insurance firm, which is based at Findel, was unable to reach an agreement on a social plan with staff representatives and unions within the agreed 15-day time-frame.

In a press statement, Lombard said that it had now entered the formal conciliation process, which is expected to continue until mid-July.

The discussions pertain to Lombard's Strategic Development, which will see 89 out of 400 staff in Luxembourg made redundant. The plan was announced on May 24.

Its aim was to reconfigure operations and ensure the firm's long-term sustainability. According to Lombard, 30 million euros will be invested, which will ensure the company will be able to remain in Luxembourg.