The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Insurance, Reinsurance And Pension Funding, Except Compulsory Social Security 65 - Insurance, reinsurance and pension funding, except compulsory social security
7,500 jobs Number of planned job losses
Announcement Date
22 June 2006
Employment effect (start)
Foreseen end date
Description
Allianz, a German insurance company, is to cut 7,500 jobs in a drive to boost earnings and win back customers. Most of the drastic cuts, including 5,000 insurance jobs, will come in Germany. The latest shake-up at the profitable group will see 2,480 jobs go at Dresdner Bank, whose City-based investment banking arm, Dresdner Kleinwort Wasserstein, is to drop Wasserstein from its name and refocus on global banking, with its proprietary trading desk dropped. Around 300 of the job cuts, largely among back office staff, are expected to hit London.
Allianz's chief executive, Michael Diekmann, said in a website interview: 'Unfortunately the measures are absolutely necessary. Over the past few years in Germany, particularly in insurance, we have been continually losing clients and therefore market share. We cannot simply stand idly by. But the alternative - waiting and only responding when the company comes under enormous pressure - is far worse for those affected. Examples of this abound.'
Mr Diekmann, who plans to save 1.2bn (£825m) through this latest phase of restructuring, pledged that there would be no compulsory redundancies until the end of 2007 in the insurance arm, which is to slash its German administrative centres from 21 to 10. But Verdi, Germany's main services union, attacked the plans and said it was already planning so-called warning or token strikes.
Sources
23 June 2006: The Guardian
23 June 2006: The Financial Times
Citation
Eurofound (2006), ADAG; Dresdner Bank, Internal restructuring in European Union, factsheet number 63670, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63670.
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