Zurich Financial Services plans to shed up to 2000 staff from its UK operations by 2004, after reporting a $2bn loss in the first half of 2002.
The insurance conglomerate has been forced into the m ...
Zurich Financial Services plans to shed up to 2000 staff from its UK operations by 2004, after reporting a $2bn loss in the first half of 2002.
The insurance conglomerate has been forced into the move in a bid to reverse the effects of an unsuccessful expansion strategy. ZFS has already announced that 2500 jobs will go in Europe and America.
Analyst at Clerical Medical Simon Shaw said:"This is a necessary but unpleasant medicine."
It is widely believed that ZFS will not enforce job losses at its life sales operations, ZIFA or ZAS.
In response to the downturn the Swiss group plans to raise $2.5bn in new equity, cut its equity exposure to 10% of its portfolio and make a strategic shift to 'traditional insurance'.
Many expected their losses to be reduced, following the appointment of a new management team this year, led by Jim Schiro. The group's equity has fallen by 23% over the past year to $14.87bn.
Concerns have also been raised over the potential effects of a $500m restructuring programme.
Mr Schiro said Zurich will "sharpen its focus as an insurance-based financial services provider." Anticipation of the changes has prompted a sharp fall in the group's share price this week.
The group are expected to announce details of the cost cutting measures later today.
