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 65.1 - Insurance
1,800 - 1,835 jobs Number of planned job losses
Announcement Date
1 June 2016
Employment effect (start)
1 January 2017
Foreseen end date
31 December 2020
Description
On 1 June 2016, German insurance group Ergo announced plans to cut about 1,800 jobs throughout Germany by 2020. Mostly affected are jobs in sales. According to the management, job cuts have become necessary due to declining sales. The company wants to become more competitive, more efficient and to proceed in digitisation. The company will invest €1 billion in the new strategy and expects to save €540 million per year. To expand on customer requests, Ergo will start a new digital provider as an independent business in 2017 and will quit activities in the life insurance industry. The mother company Munich Re supports the staff reduction and urges Ergo to save costs.
Moreover, Ergo will close 18 decentralised offices. Redundancies should be carried out as socially acceptable as possible. The executive board is currently negotiating with the works council. Ergo, headquartered in Düsseldorf, currently employs 14,320 employees in Germany. For latest restructuring at Ergo see May 2014, March 2013 and October 2012.
Sources
1 June 2016: Ergo press release
1 June 2016: Versicherungsbote
Citation
Eurofound (2016), Ergo, Internal restructuring in Germany, factsheet number 87657, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/87657.
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