Swiss Re announces 1,150 job cuts

by David Masters

Story link: Swiss Re announces 1,150 job cuts

Swiss Re has announced plans to cut 10% of its 11,560 staff following record losses that forced the company to turn to Warren Buffett for capital.

The reinsurance firm said the jobs will be axed within the next year, saving the company 400m Swiss francs ($350m) by the end of 2010.

Last month the group reported its 2008 results, with a net loss of 864m Swiss francs ($735m).

The company said in a statement: “Swiss Re is taking steps to increase its focus on profitable core business and strengthen its capital position.

“Swiss Re will also accelerate efforts to simplify the organisation and improve operational effectiveness.

A spokesperson for the group declined to comment when asked how many Swiss Re staff are employed in the UK, and whether UK staff will be affected.

The company also announced the appointment of Agostino Galvagni as chief operating officer, effective 1 May 2009.

Stefan Lippe, Swiss Re’s CEO, said: “Business focus and delivery of results have always been the hallmark of Agostino Galvagni, and we are delighted that he will strengthen our leadership team.

“He brings in-depth business and client servicing experience to this role.”