French insurer AGF plans 1,500-2,000 layoffs

Business Materials 17 February 2008 03:53 (UTC +04:00)

( Reuters ) - French insurance firm AGF, part of Germany's Allianz, is planning to cut between 1,500 and 2,000 jobs, a newspaper reported on Saturday, and the company said it was consulting with staff on boosting competitiveness.

French daily Le Parisien said AGF was due to announce the plan, which would affect mainly back office staff, on Wednesday February 20, when a works council meeting is due to be held.

AGF neither confirmed nor denied the report.

"Le Parisien's information is erroneous and incomplete and is not based on information coming from the company," an AGF spokeswoman said.

The company said in a statement earlier on Saturday that a works council meeting was indeed scheduled for Wednesday and that the results of several working groups set up last year would be discussed then.

"The aim of the working groups was to think about adapting the company with a view to increasing its competitiveness to ensure its future development," the company said.

Documents had been prepared in order to inform and consult with staff representatives, it said.

"Any speculation on the content or the consequences of this process is today premature and damaging," AGF said.

"AGF is determined to open in the best possible conditions transparent negotiations with its partners on the project which will be presented on February 20 and which is aimed at ensuring the lasting and competitive development of AGF," it said.