April 2, 2009

Swiss Re to cut 10 percent of workforce

Swiss reinsurance company Swiss Re said it would cut its global workforce by 10 percent over the next 12 months to reduce annual costs by $212 million.

A company spokesman in London said Swiss Re would accelerate efforts to simplify the organization and improve operational effectiveness, The Times of London reported Thursday.

The company, which currently employs 11,560 people, will consolidate support services into fewer locations in order to achieve economies of scale, the spokesman said.

Swiss Re also said it would promote Agostino Galvagni to chief operating officer, effective May 1.

The company, hurt by investments in subprime mortgages, posted a 2008 third quarter loss of $265 million and has lost 61 percent of its market value this year, The Times said.