Zurich Plans U.K. Job Cuts in Restructuring

Following a larger than expected 5.5 percent drop in profits, Anglo-Swiss insurer Zurich Financial Services announced plans to reduce its operations in the U.K. with the elimination of 550 jobs. Most employees, however, will be reassigned to new positions within the company as it restructures its operations; it expects to shed about 170 in total.

Zurich estimates the move will save as much as £65 million ($94 million) by 2002, 15 percent of the costs of its U.K. operations.

The group is in the process of combining its international and U.K. life insurance operations into one unit, and expects to eliminate a number of management positions to eliminate duplication.