View this article online: https://www.insurancejournal.com/news/international/2014/03/11/322897.htm
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.