German insurer Allianz SE said it had reached a new labor deal that avoids any near-term compulsory layoffs but still foresees some 5,700 jobs cut by the end of 2008.
Under the agreement with the ver.di union, Allianz pledged that there would be no compulsory layoffs through 2009, two years longer than originally planned, but that it will go ahead with downsizing.
Allianz, Europe’s largest insurer by premiums, said in June that it would cut 5,000 German insurance jobs on top of the 700 job cuts already announced in February.
As part of a companywide restructuring, it has also announced plans to cut 2,480 jobs at subsidiary Dresdner Bank by 2008.
Allianz said labor representatives and management will start in 2009 to negotiate further restructuring measures.
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