Generali to cut 9% of German workforce and consolidate hubs in cost drive

Assicurazioni Generali SpA (BIT:GASI) is launching a major restructuring of its German operations, planning to cut roughly 9% of its local workforce and consolidate office locations as Italy’s largest insurer accelerates a broader efficiency drive across Europe.

Under the plan running through 2030, Generali Germany will eliminate 800 positions while directing three-figure million-euro investments into digital technology, artificial intelligence, and IT infrastructure. The move aligns with Chief Executive Officer Philippe Donnet’s overarching strategy through 2027, which targets higher-margin profit pools while streamlining operations, expanding automation, and reducing structural overhead across key European markets.

To optimize its physical footprint for hybrid work patterns, the insurer will concentrate operations into five primary regional hubs in Munich, Cologne, Karlsruhe, Hamburg, and Saarbrücken. Existing teams in Aachen, Nuremberg, and Stuttgart will be merged into neighboring target locations over the coming years, while dedicated specialist sites in Frankfurt, Leipzig, and Berlin will remain operational.

Management has opened negotiations with the Group Works Council to implement the operational changes and staff reductions in a socially responsible manner. To smooth the transition, Generali is offering employees job and location guarantees through the end of 2030, leveraging early retirement schemes, demographic retirements, and natural attrition to absorb the headcount reduction while selectively hiring for future skill sets.

The restructuring also involves refining the service model for Generali's Exclusive business unit by establishing nationwide networked specialist centers for specific product lines, backed by a unified service center. Furthermore, the company plans to optimize Generali Deutschland Services by narrowing its internal scope to core insurance functions and outsourcing select auxiliary operations to external partners.