NU Online News Service
Swiss Re, announcing what it called a move to "capture efficiency gains" following its purchase of GE Insurance Solutions, said yesterday it will reduce its global work force by 2,000 through layoffs and natural attrition.
The 17 percent work force cutback at the Zurich-based firm will be a two-step process, the company said, with a reduction first of more than 250–particularly at the management level.
The larger second phase of layoffs will be completed in the next four months, with an overall work force reduction of up to 2,000 positions that will be completed by the end of 2007, the reinsurer added.
Swiss Re said its large office locations–including Zurich, London, Armonk, Kansas City and Munich–will be most affected.
The company said it is committed to providing all impacted employees with appropriate separation packages, including professional career support.
Swiss Re announced its arrangement to purchase GE Insurance Solutions in November 2005 for $6.8 billion in cash and stock–a deal that made it the world's largest reinsurer, surpassing Munich Re.
Swiss Re said through layoffs and merging of functions, it expects to save $300 million per year by the end of 2007.The company operates through offices in over 30 countries.
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