The German insurance firm Ergo intends to lay off approximately 1,000 employees as it increases its reliance on artificial intelligence, with the impacted roles primarily in call centers and claims adjustment departments.
Ergo, a subsidiary of Munich Re, is planning to cut about 1,000 jobs from its workforce of 15,000 as it seeks to enhance its use of artificial intelligence in operations. According to Lena Lindemann, the company’s HR director, the layoffs will mainly affect positions within call centers and departments responsible for claims adjustment. This shift towards automation is part of a broader trend in the German insurance industry, aimed at improving efficiency and reducing costs.
The company stated that it does not intend to replace the laid-off employees, and some staff may also be offered early retirement, further reducing the workforce. Around 500 employees are expected to be retrained to adapt to new roles. Yannick Tetzlaff, a company representative, indicated that if retraining were not implemented, the number of job cuts would have been even higher, highlighting the urgent need for adaptation within the industry.
This move follows a similar trend in the insurance sector, where automation is leading to significant workforce reductions. For example, Allianz Partners announced a layoff of approximately 1,800 employees, representing around 8% of its staff, in response to increased automation. These developments underscore the impact of artificial intelligence on employment in sectors like insurance, prompting a reevaluation of workforce strategies as companies navigate the balance between technology and human resources.
