France-based AXA SA is reportedly cutting around 250 jobs from its information technology unit in Hong Kong in order to reduce costs, according to unnamed sources.

As part of the restructuring, the insurer will set up two IT centres in other Asian markets – one in Kuala Lumpur and another in Manila.

Around 400 staff will be hired for the two new centres, based on a staff memo from AXA’s CEO, one of the sources told Reuters. At present, all of AXA’s IT operations in Asia are based in Hong Kong.

AXA Asia CEO Doina Palici-Chehab was reported to have issued a staff memo saying that the company was transforming its regional IT operations by establishing “shared services centres” in Manila and Kuala Lumpur, with 300 and 110 employees, respectively.

In an email response to an inquiry from Reuters, a representative of AXA said: “AXA Asia constantly reviews its business practices to improve our product offering and service to customers.

“We have built a strong Asia technology platform and are working on improving those capabilities, which will involve the rebalancing of some roles in the region.”

However, the insurer did not confirm nor deny the layoffs.

Earlier this month, AXA said that it was confident that it would reach its 2020 targets, which involve saving around US$2.48 billion over four years, partly based on higher-than-expected net profit for the first half of 2017.


Related stories:
Zurich looking to slash HQ jobs - reports
AXA shines spotlight on big issue with small businesses
AXA Insurance Singapore names new CEO