Allianz unit to cut as many as 1,800 jobs in push to adopt AI

(Bloomberg) --Allianz SE plans to eliminate hundreds of positions at its assistance and travel insurance subsidiary Allianz Partners as the company pushes forward with implementing artificial intelligence solutions.

The cuts, which they expect to take the forms of severance agreements, early retirements and similar options, will amount to between 1,500 to 1,800 positions across Europe, the unit's chief executive officer Tomas Kunzmann said at an event late Tuesday in Munich. 

"Over the past six months, we have negotiated with our colleagues on the works councils," Kunzmann said, adding that voluntary leave offers had been extended in Spain, France, Germany, Italy, as well as the Benelux countries.

Allianz Partners, which employs more than 22,000 people, has previously warned that staffing levels could be impacted by AI-driven transformations. It cited the technology as a reason for the cuts. 

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Concerns about how AI will transform work are on the rise everywhere as vast sums of money are pumped into the technology. Bloomberg Economics estimates that 27% of workers in advanced economies are likely to be meaningfully affected by AI.

Munich Re's primary insurance unit Ergo aims to cut about 1,000 positions in Germany partly as a result of its increased use of artificial intelligence, Bloomberg has reported.

"This could happen to any of us at some point," Kunzmann said of the Allianz Partners cuts. "We treat these colleagues exactly as is appropriate — fairly," he added.