The newly formed insurance giant Helvetia Baloise, created from a multi-billion franc merger, plans to boost profitability through significant job cuts. Between 2,000 and 2,600 positions at Switzerland's largest multi-line insurer are set to be eliminated by 2028, according to a source familiar with the matter who spoke to Reuters on Tuesday after employees were informed.
Helvetia Baloise had already indicated in April, when announcing the merger, that job reductions would form part of a broader cost-saving initiative totaling 350 million Swiss francs, though no specific figures were disclosed at the time. The source added that Switzerland would bear the brunt of the cuts, with 1,400 to 1,800 jobs affected. In addition to local operations in both countries, the group's Swiss headquarters will be particularly impacted. In Germany, a further 260 to 330 positions are expected to be cut.
A Helvetia Baloise spokesperson confirmed the planned reductions, noting that layoffs would be part of the process, although the exact number has yet to be determined. The company is also relying on natural employee turnover, typically accounting for 7 to 8 percent of its workforce, as well as early retirements. The group, headquartered in Basel, currently employs around 22,000 people.
On Friday, Helvetia from St. Gallen and Baloise from Basel completed their merger. The spokesperson reaffirmed the 350 million franc cost-cutting target. Previous statements indicated that two-thirds of these savings would come from personnel expenses. Both companies had already launched their own savings programs in 2024, expected to deliver around 100 million francs at Baloise and 200 million francs at Helvetia. These initiatives will continue alongside the new merger synergies. The reduction of up to 2,600 jobs results from all three measures combined. According to one expert, the key to the merger's success will be the ability to unite the two corporate cultures.
Helvetia Baloise has a market capitalization of nearly 20 billion francs and operates not only in Switzerland and Germany but also in France, Italy, Spain, Belgium, Austria, and Luxembourg. In the insurance business, size is considered a crucial success factor. "One in three Swiss households will soon be insured or have their pension plans managed by Helvetia Baloise," said Daniel Bosshard of Luzerner Kantonalbank. The company will become the largest employer in Switzerland's insurance sector. Helvetia Baloise positions itself as one of the ten largest providers in Europe, with Allianz, Axa, and Zurich leading the market.
(Reporting by Oliver Hirt. Edited by Olaf Brenner. For inquiries, please contact our editorial teams at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
