Assicurazioni Generali SpA plans to reduce around 9% of its workforce in Germany and downsize locations as part of a simplification effort in the European country.
Generali plans to set up five regional centers in Munich, Cologne, Karlsruhe, Hamburg and Saarbrücken, bringing together teams currently spread across Germany to reduce costs and strengthen collaboration, the Italian company said in a statement on Friday. The job reductions will mainly be achieved through “voluntary retirement arrangements.”
The insurer will invest “a three-digit million euro amount” in IT, digitization and artificial intelligence. It also plans to recruit new employees “with skills for the future.”
The planned job cuts are part of Generali’s broader push to streamline its operations and direct resources toward areas offering stronger growth and profitability. Under Chief Executive Officer Philippe Donnet’s strategy through 2027, Italy’s biggest insurer is seeking to accelerate growth in its preferred profit pools while simplifying its operating model, increasing automation and improving productivity.
In Germany, the company has already been cutting costs and modernizing its operations, with a target to reduce its cost-income ratio to 52% by 2027, from 57% in 2024. Generali had more than 9,000 employees in the country, where last year it generated over €15 billion ($16.8 billion) of premium income, according to its website.
The news was first reported by German outlet Manager Magazin.
Photograph: A Generali sign; photo credit: Alessia Pierdomenico/Bloomberg
Topics Germany
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