Swiss insurance group Zurich Financial Services announced today it is to cut 4,500 jobs.
The company, which appointed American Mr James J. Schiro to run the group in May, also said it would refocus its operations on its core insurance business in markets in North America, Britain and Europe and especially in Germany, Italy, Spain and Switzerland.
The new focus marks a change in course from the strategy of former chief executive Mr Rolf Hueppi - under whose leadership the group expanded rapidly.
The restructuring, which will cut the company's 76,500-strong workforce by 5.8 per cent, is expected to cost €500 million after tax in the second half of the year.
But the company also aims to raise its capital with a €2 billion to €2.5 billion rights offer to help restore its finances.
In the first half of this year, the company booked a €2.7 billion charge for asset impairment, bringing its net result for the period to a €2.02 billion loss.
The result was far worse than analysts' expectations - which had ranged from a €150 million loss to a €187 million profit.
AFP