Swiss Re Confirms 2000 Job Cuts

September 25, 2006

From a financial standpoint Swiss Re’s integration of GE Insurance Solutions seems to be progressing well. However, it has inevitably led to job cuts, or as the British would put it, redundancies.

Swiss Re announced that it “will start informing today [Sept. 25] its employees on the further staffing decisions taken to capture efficiency gains of at least $300 million from the integration of Insurance Solutions.”

The announcement confirms earlier statements that between 1,100 and 1,700 jobs, a 10 to 15 percent reduction, could be implemented when the two companies completed the formation of the world’s largest reinsurer (See IJ Website Jan. 20). 250 managerial jobs were axed shortly after the formal merger process was completed (See IJ Website July 11).

In its latest announcement Swiss Re said that by the end of 2007 it “will have reduced up to 2000 positions worldwide related to the integration of Insurance Solutions, a large part of them through natural attrition. The remainder will be implemented through early retirements and lay-offs. Europe contributed 55 percent, the Americas 35 percent and Asia, Middle East and Africa 10 percent positions to the reduction since January 2006. Switzerland will have contributed 21 percent of the total reduction.”

Swiss Re did add that it ” is committed to providing all employees affected with appropriate separation packages including professional career support.”

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