Zurich announces 4,500 job cuts

ZURICH : Zurich Financial Services is to increase its capital and slash 4,500 jobs, the Swiss insurance group said on Thursday as it posted a US$2.02 billion dollar (2.03 billion euros) loss for the first half of the year.

The company, which appointed American James J. Schiro to run the group in May, also said it would refocus its operations on its core insurance business in markets in North America, Britain and Europe and especially in Germany, Italy, Spain and Switzerland.

The new focus marks a change in course from the strategy of former chief executive Rolf Hueppi under whose leadership the group expanded rapidly.

The restructuring, which will cut the company's 76,500-strong workforce by 5.8 percent, is expected to cost $500 million after tax in the second half of the year.

But the company also aims to raise its capital with a $2.0 to $2.5 billion rights offer in order to help restore its finances. --AFP.