Major insurer AXA has revealed its plan to slash 650 jobs in Belgium over the next two years as the industry giant continues to scale back its operations in Europe.
AXA Belgium head Jef Van In said the company presented the plan to unions on Monday, according to a report by
Bloomberg.
The number of jobs to be reduced represents 15% of AXA’s insurance employees in Belgium, where the firm also runs a banking network.
“AXA Belgium is solid today, and we need to carry out this transformation to remain so,”
Bloomberg quoted Van In as saying.
The transformation plan includes AXA Belgium’s strategy to focus on pension insurance and property-and-casualty products, forcing the insurer to stop selling some individual life-coverage at the start of 2017.
Over five years, AXA Belgium will also invest €200 million, or about £167.6 million, to new technologies to improve client and broker service,
Bloomberg reported.
AXA disclosed the planned job cuts following a recent major management shake-up, which saw last week’s appointment of Thomas Buberl as the new CEO. He succeeded Henri de Castries, who retired after his 16-year term.
According to
Bloomberg, Buberl aims to increase profitability through 2020 by growing digital spending and by pursuing cost cuts worth €2.1 billion.
Earlier this year, the insurer completed the sale of its insurance businesses in Portugal, Serbia and Romania and offloaded its banking operations in Hungary.
AXA has also divested its assets in the tobacco industry after selling its UK offshore investment bonds business based in the Isle of Man.
In the UK, AXA has sold its wrap platform unit Elevate and its investment, pensions and direct protection businesses.
Related stories:
Why there will be more ‘for sale’ signs over insurance
AXA’s London tower plans hinge on investors
AXA sees group revenue fall, profits rise
