Swiss Life to cut 520 jobs
Insurer Swiss Life said Wednesday it would cut jobs in Switzerland as first half profits fall.Zurich -- Insurer Swiss Life said Wednesday it would cut 520 jobs in Switzerland as it posted an 8.6 percent drop in first half net profit to CHF 139 million (EUR 91.5 million, USD 131 million).
"To remain competitive in the closely-fought life and pensions market and to enhance our ability to compete, we must focus more strongly on client needs and product profitability and further reduce our cost base," chief executive Bruno Pfister said in a statement.
The Swiss insurer aims to save up to CHF 400 million through measures such as job cuts which would be implemented by 2012.
Analysts at Bank Wegelin described Swiss Life's latest earnings as "disappointing" and said the cost-cutting measures were "inevitable."
These measures "should pay off in the long term but the group therefore remains a construction site with an uncertain future," they added.
The insurer's stock was the worst performer in early morning trade, slipping 2.20 percent to CHF 124.20, while the overall Swiss Market Index was up 0.06 percent.
AFP / Expatica