Swiss Re layoffs lead to savings

In lieu of Swiss Re’s deal to acquire the insurance division of US General Electric, the reinsurer plans to reduce its workforce by approximately 1,700 jobs globally.The senior management of the two companies reportedly met to discuss the consolidation of the two workforces and the future plan for leadership.According to the Financial Times, Swiss Re’s chief executive Jacques Aigrain said that approximately 15% of the combined workforce, which currently represents about 11,300 people, would be subject to synergy because the consolidated group plans to reduce the number of senior executives.Indications suggest many GE employees will be excluded and not all will have a position in the new company.These job cuts are expected to create an annual savings of US$300 million by the end of 2008.