Swiss Re to shave off 2,000 employees in GE deal

Swiss reinsurance and financial services group Swiss Re is to cut 2,000 jobs by the end of next year - and London is on the radar.

"Large office locations including Zurich, London, Armonk, Kansas City and Munich will be most affected," the group announced today.

The cull will affect 17.5 per cent of Swiss Re's 11,500 strong global workforce and comes in the wake of its $7.4bn takeover of US-based GE Insurance Solutions, Reuters reports.

The company says the cuts allowed it to maintain its goal of cost synergies of at least $300 million a year, to be realised by the end of 2007, through organisational streamlining.

Swiss Re says it has maintained its target of $250 million in one-off restructuring costs from the deal and has already cut over 250 positions particularly in management.

The group aims to complete the restructuring over the next four months and predicts a total loss of 2,000 jobs by the end of 2007.

A company spokesperson says, "This move is part of the integration of GE Insurance Solutions into the Swiss Re group. Beyond that we have not announced any additional restructuring measures."