Axa XL has outlined plans to cut 711 positions in Europe as the P&C carrier completes the merger of operations following Axa’s acquisition of XL Group.
The potential reduction represents a 7.5 percent cut to Axa XL’s 9,500-strong global workforce.
Axa XL said supporting measures would be put in place as it forges ahead with the restructure and the cuts could include internal redeployments or voluntary departures “depending on local social requirements or practices.
Earlier this month Axa XL began to transfer employees to a single company.
After receiving regulatory approval the carrier will merge Axa Corporate Solutions, risk consultants Axa Matrix, art and valuables insurer Axa Art and XL Catlin under the Axa XL banner.
Commenting on the restructure, Axa XL CEO Greg Hendrick said: “This is a very important next step for Axa XL in its journey to become a united division. This proposed target operating model and organisational structure will help us to deliver the best services to our customers and provide them with the innovative solutions they need to succeed".
Axa Group chief integration officer Doina Palici-Chehab added: “Consistent with Axa’s long-term responsible employer strategy, Axa XL is committed to supporting its employees through the change period, and every effort will be made to assist them.”
XL Group was delisted after Axa completed its $15.3bn acquisition of the carrier in September.
Axa Group has 117,000 employees worldwide, according to the carrier’s website.
In the immediate aftermath of the deal announcement, Axa and XL senior management said they expected to achieve Axa an annual run-rate of $400mn in pre-tax synergies, of which $200mn would stem from operating costs.
The targeted expense synergies represented a relatively modest 8 percent of the combined expense base, although a benchmark for cost synergies from deals like this is 10 percent.
At the time, Axa flagged scope for $100mn of savings from reduced reinsurance costs. It also planned to generate $100mn annually from what it called revenue synergies, achieved via the sale of XL's products through Axa's distribution channels.