NSW state insurer icare has begun talks with union representatives and staff over proposed structural changes that may reduce its workforce and bring savings of about $23 million a year.

It says its revised organisational structure will help build efficiency and long-term sustainability.

Under the plan, group executive roles could be cut by 25% and senior leadership jobs by 20%, with a 7% reduction in roles across the organisation.

insuranceNEWS.com.au understands about 130 jobs could be affected. icare has about 1800 employees.

“It is important to note that these numbers are based on the current proposal, and may change as consultation with icare’s people and union representatives continues over the next few weeks,” the insurer said. “The current proposal for the new structure is consistent with the NSW government target of reducing senior executive roles by at least 15%.”

Last November, the state government announced a Treasury-led review of icare operations that includes scrutiny on the number of senior executives and their pay, as it looks to “cut excessive spending, waste and salary costs”.

icare says its priority is to maintain continuity of services and improve outcomes for the communities it serves. “There will be no negative impact on the services we provide to injured people, employers and government agencies.”

The insurer says the proposed structural changes form part of a broader operational review, carried out over the past three months, to improve efficiency and effectiveness.

“This work builds on the major transformation program, including in response to various reviews, that it has delivered over the past three years to fix its foundations, strengthen governance, introduce new claims service providers and build a constructive culture,” icare said.