Insurer Allianz to cut 650 UK jobs
German insurance giant Allianz has revealed plans to cut 650 UK jobs across several lines of its business, according to reports.
Sources told the Financial Times that management informed its employees on Wednesday morning that 650 people from its commercial, speciality and personal insurance business will be let go, subject to a consultation.
The reason was attributed to the insurer shifting towards a digital-focused organisation.
The German firm employs approximately 6,000 people across the UK, with its headquarters based in Guildford, Surrey.
Allianz UK cuts come after Twickenham deal
The home of English rugby, Twickenham, was renamed Allianz Stadium after the Rugby Football Union and the insurance giant finalised a partnership last August. The deal was reportedly worth £100m over a decade.
Allianz spent just over £1bn buying the general insurance division of LV= in two stages, completing the full acquisition in December 2019.
The insurer also made news recently as it was one of the providers of cyber insurance to Marks and Spencer (M&S) and was set to cover the first £10m of the retailers £100m policy.
The cuts come after Colm Holmes, CEO of Allianz Holdings, told the Insurance Post last August the company was spending £200m across 2024 and the same amount again over 2025 on change within the UK business.
Commenting on the news, a spokesperson for Allianz said: “We are acting in response to shifting preferences towards digital, self-service customer support and changing market dynamics in claims, particularly motor, where technology advancements have led to a reduction in the number of accidents on our roads.”
“We are investing in a multi-year transformation programme to become a simpler, digital-led, leaner business. Sadly, today we have informed colleagues of the difficult decision to reduce the size of Allianz UK’s general insurance workforce by the end of 2025.”
“We appreciate this is disappointing and difficult news and our priority now is to support those who’ve been impacted. We are helping our people through this process, providing a range of support and advice, and consulting with employee representative bodies about these changes,” the spokesperson added.