Photographer: Gianluca Colla/Bloomberg

Zurich Insurance Raises Job Cut Plans to Affect at Least 1,800

  • Company had previously said 1,140 positions would be hit
  • Jobs to be moved from Switzerland, general insurance affected

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 insurance business in the Middle East from this month because growth potential is limited.

Swiss newspaper Tages-Anzeiger reported the additional reductions in Switzerland earlier Thursday.

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