Swiss Re to slash over 1,100 jobs

Reinsurance major Swiss Re will be cutting over 1,100 jobs or about 10 per cent of its global workforce, as part of cost saving efforts.

"Swiss Re intends to reduce its current global headcount of 11,560 by approximately 10 per cent over the next 12 months," the firm said in a statement today.

The move is expected to save nearly 400 million Swiss francs (about $349 million) by the end of 2010.

The company has also appointed Agostino Galvagni as its Chief Operating Officer, with effect from May 1, 2009.

Hit by the ongoing financial turmoil, the entity posted a loss of about $809 million for the full year 2008. Recently, American legendary investor Warren Buffett had pumped in more than $2.5 billion into the company.

Meanwhile, Swiss Re is taking steps to focus on profitable core business and strengthen the capital position to enhance its presence in the reinsurance sector.

"Swiss Re will concentrate on conservatively managing the assets generated through reinsurance activities and continue de-risking the investment portfolio," the statement added.

It said the aim is to simplify the organisation and improve operational effectiveness by streamlining its office network.