Allianz SE plans to eliminate between 1,500 and 1,800 positions at its Allianz Partners subsidiary in Europe as the unit introduces artificial intelligence solutions, the unit's chief executive officer, Tomas Kunzmann, said at an event in Munich on Tuesday.
The changes will be delivered primarily via severance agreements, early retirement schemes and comparable voluntary options rather than compulsory dismissals, Kunzmann said. He added that Allianz Partners has spent the past six months negotiating with works councils and has extended voluntary leave offers in Spain, France, Germany, Italy and the Benelux countries.
Allianz Partners employs more than 22,000 people globally. The company had earlier warned that staffing levels could be affected by AI-driven transformations and cited the technology as a direct factor behind the workforce reductions.
Commenting on the announcement, Kunzmann said: "This could happen to any of us at some point." He added: "We treat these colleagues exactly as is appropriate - fairly."
The decision at Allianz Partners echoes broader concerns about the workforce effects of artificial intelligence. Bloomberg Economics has estimated that 27% of workers in advanced economies are likely to be meaningfully affected by AI. Separately, Munich Re's primary insurance unit, Ergo, is reported to be aiming to cut roughly 1,000 positions in Germany in part due to increased use of artificial intelligence, according to Bloomberg.
Context and operational details
- The announced headcount reduction applies to Allianz Partners in Europe and totals between 1,500 and 1,800 roles.
- Measures to implement the cuts include severance agreements, early retirements and similar voluntary options.
- Negotiations with works councils have taken place over the last six months, and voluntary leave offers have been extended in Spain, France, Germany, Italy and the Benelux countries.
- Allianz Partners employs more than 22,000 people.
Implications noted by management
Management has identified artificial intelligence as a reason for the cuts and framed the changes as part of an AI-driven transformation within the unit. Executives emphasized implementing the reductions through negotiated and voluntary channels and stressed a commitment to fair treatment for affected colleagues.