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Zurich Insurance Group has announced plans to streamline its organisational structure to reduce both complexity and costs as it continues to deliver on the Group’s strategic priorities for 2014-2016. As set out at Investor Day in late 2013, the Group continues to invest in priority markets and in parallel is reducing the cost of its global structure. This initiative, which follows a comprehensive review, will remove management layers between Group and the business units. It is designed to position the company for profitable growth, placing customers and their needs at the centtr of our business, and to drive one of the key strategic priorities set out in late 2013, which is growing operating earnings. CEO Martin Senn comments “We continue to make significant progress towards our strategic goal to make Zurich a focused and more profitable business. 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 $250m by the end of 2015. This would correspond to up to 800 job losses throughout the global organisation. Customer facing activities will not be impacted. |
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