A major insurer announced plans it says will streamline its organizational structure, which could lead to the loss of 800 jobs.
The move would “remove management layers between Group and the business units,” according to
Zurich Insurance Group. According to today’s press release,
Zurich’s goal is for more profitable growth, and to grow operating earnings, one of the organization's strategic priorities set out late last year.
“We continue to make significant progress towards our strategic goal to make Zurich a focused and more profitable business,” said CEO Martin Senn. “This latest initiative empowers our people to act decisively in delivering first-class services to our customers while also minimizing overheads. It will be implemented through a measured process, with employees supported at every stage of the transition.”
The proposed changes, which remain subject to the appropriate consultation with employees and their representatives, would lead to annual run-rate savings of approximately $250 million by the end of 2015, states Zurich.
That would mean up to 800 job losses throughout the global organization, although customer facing activities will not be impacted, said Zurich. (continued.)
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Zurich Insurance Group has had a tumultuous 2013, following the tragic suicide death of Pierre Wauthier in August, and the ensuing resignation of Group Chairman Jose Ackermann who took personally the suicide note that stated Wauthier had been demoralized by the new aggressive tone at Zurich under Ackermann.
Two independent investigations found no indication that there had been undue pressure on Wauthier.
