- Ergo insurance company plans to eliminate a thousand jobs by 2030.
- The insurance company plans to increase the use of artificial intelligence and retrain employees.
- The reduction of jobs is part of Munich Re’s austerity program.
- The reduction will take place through natural turnover, early retirement and severance pay.
The German insurance company Ergo plans to eliminate approximately one thousand jobs by 2030. An agreement was reached with employee representatives on this issue, a company spokesperson said on Tuesday. TASR informs about it based on the report of the DPA agency.
Layoffs for operational reasons are excluded until 2030. Ergo insurance company plans to increasingly use artificial intelligence (AI) in the coming years, which will mean retraining for new positions for many employees. Based in Düsseldorf, the company employs approximately 15,000 people in Germany according to its own data. By the end of the decade, around 200 employees a year should lose their jobs.
Reducing the number of jobs is part of an austerity program, through which Ergo’s parent company Munich Re strives to reduce its annual costs by a total of 600 million euros by 2030. The reduction is to be achieved through natural turnover, early retirement and severance programs.
