Zurich to cut 460 jobs in Britain
Europe's sixth largest insurer, Zurich Financial Services, is to cut 460 jobs from its British life insurance arm as part of a restructuring programme designed to save $93.22 million (SFr161 million) a year.
The company, which was formed from the merger of Switzerland’s Zurich Group and British American Tobacco’s financial services arm, said most of the cuts would be achieved through natural wastage.
Zurich Financial will have to bear a one-off restructuring charge of about SFr36 million, but the move is still expected to save the business SFr123.5 million.
Zurich said the move followed its decision to combine its British and international life businesses into a single unit led by chief executive Ray Greenshields.
“I see this as the vital first step in our efforts to make our business fit to compete successfully in an increasingly competitive market,” Greenshields said.
Last month the company warned of another poor year after a disappointing performance in 2000. It blamed poor financial markets, unexpected additions to reinsurance reserves, large bad weather claims and costs arising from simplifying the group structure.
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