Dusseldorf - Ergo, a subsidiary of the Munich Re insurance group, said Tuesday it would sacrifice nearly 2,000 jobs in a cost-cutting drive at the German retail insurance unit lasting till 2010. Dusseldorf-based Ergo, which offers life, health and general insurance through subsidiary brands, is Germany's second-biggest insurer after Allianz. It currently employs 20,000 people in the country.
It said it would eliminate 1,570 existing jobs and leave 360 current vacancies permanently empty and hoped to reduce annual costs by 180 million euros (283 million dollars) thanks to the cuts and better coordination of its business from head offices.
Last week Ergo issued an earnings warning, saying weak share prices were hurting its investment returns.
