Zurich Insurance Group AG, Switzerland’s biggest insurer, is increasing job cuts and relocations to a total of at least 1,800 at the company reduces costs and overhauls its biggest unit.
The company will move 300 positions in group operations out of Switzerland by the end of 2018 as part of the $1 billion cost reductions announced in May, said Sylvia Gaeumann, a spokeswoman for the insurer in Zurich. In the corporate business of its general insurance unit, 360 positions will be affected globally by 2017, including dismissals, canceled openings and relocations, she said.
The move follows cuts already announced that affect 1,140 positions, with 440 in the U.K. and 500 in Germany. Headcount won’t fall by 1,800 under the measures because some roles will continue to exist in different locations, Gaeumann said.
Martin Senn stepped down as Zurich’s chief executive officer Tuesday and Chairman Tom de Swaan took the post temporarily. The company had to abandon a bid for RSA Insurance Group Plc after a review of the general insurance unit forced it to increase provisions and the business reported a third-quarter loss.
While the review of general insurance under its new chief, Kristof Terryn, is complete, measures to improve the unit are ongoing. Zurich said last week it would no longer write general insurancebusiness in the Middle East from this month because growth potential is limited.
Swiss newspaper Tages-Anzeiger reported the additional reductions in Switzerland earlier Thursday.
Related:
- Zurich CEO Senn’s Departure May End Era of Generous Dividends
- Zurich CEO Senn Resigns; de Swaan Appointed to Interim Role After ‘Setbacks’
- Zurich Insurance Plans to Exit P&C Business in Middle East After Strategic Review
- Zurich Insurance Plans to Replace CEO Senn, Reports Swiss Magazine
- Zurich to Cut 440 Jobs at U.K. P&C Insurance Unit as Part of Cost-Cutting Program
- Zurich Prefers Using $3B in Excess Capital on Purchases, Not Shareholder Payouts
- Zurich Insurance Q3 Profit Falls 79% on Losses from Tianjin Port Explosions
- A.M. Best Affirms Zurich Insurance Ratings; Outlook Negative on Expected Losses
- Zurich Abandons $8.7B Takeover of RSA After Forecasting Losses in P/C Business
- Zurich Names Terryn General Insurance CEO, as Kerner Steps Down
- Zurich Aims to Cut Costs by $1B, Seeking to Reverse Earnings Decline
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