Zurich Insurance to Cut Up to 800 Jobs to Save $250 Million

By | March 11, 2014

Zurich Insurance Group AG, the biggest Swiss insurer, plans to save $250 million annually by cutting as many as 800 jobs after lowering its profit goal in December, the company said.

Zurich plans to remove management layers between the main office and the individual business units to reduce costs, according to a statement from the insurer today. The company said it would achieve the savings by the end of 2015.

The company’s profit for the fourth quarter was below analysts’ estimates because of reorganization costs. In December, Zurich said it would have restructuring charges of as much as $600 million over the next year.

“We continue to make significant progress toward our strategic goal to make Zurich a focused and more profitable business,” Chief Executive Officer Martin Senn said in the statement.

The company’s shares rose 0.5 percent to CHF 270.30 [$307.46] Swiss francs by 9:12 a.m. in Zurich trading, bringing the gain over the past 12 months to 1.6 percent.

The changes are subject to consultation with employees and their representatives, the insurer said.

Latest Comments

  • March 17, 2014 at 4:07 pm
    FFA says:
    Let me guess - most of the cuts coming in the Il Office. TX getting another influx of jobs?
  • March 17, 2014 at 12:36 pm
    Ed says:
    Sounds about right.. Probably salaries averaging 180k, benefit costs of 60-80k, stock options and tax increases due to layoffs.
  • March 12, 2014 at 10:32 am
    Consultant says:
    WOW...Do the math, that is $312,500 per employee. No wonder they need to cut cost. I would gladly work for them for half that amount, give them a hard days work and save them ... read more
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