Swiss Life to Cut 600 Jobs by 2028 Amid Expansion Plan

Swiss Life, one of Europe’s largest life insurance and pension providers, has announced plans to reduce approximately 600 positions by the end of 2028 as part of a broader effort to improve operational efficiency and strengthen its long-term competitive position.

The Zurich-based company disclosed the workforce reduction alongside its latest financial results, which showed continued growth across key business areas. Despite reporting higher profits and stronger revenue performance, company leaders said organizational changes are necessary to prepare for future market challenges and accelerate the use of digital technologies across the business.

According to the company, the planned reductions will be divided roughly equally between its Swiss insurance operations and its asset management division, with many of the affected positions located outside Switzerland. Management emphasized that most of the workforce decline is expected to occur gradually through natural attrition and selective hiring practices rather than large-scale immediate layoffs.

Swiss Life stated that around 100 positions have already been eliminated through vacancy management and hiring restraint. The company also expects approximately 100 redundancies to occur by the end of 2026 as part of the restructuring process. Employees affected by the changes are expected to receive support and assistance aimed at helping them transition to new professional opportunities.

The announcement came as the insurer reported improved financial performance for the first half of 2026. Net profit rose to CHF 649 million, while profit from operations increased to CHF 967 million. Gross written premiums, policy fees, and deposits received climbed to CHF 12.3 billion, reflecting continued demand across several of the company’s major markets.

Growth was particularly strong in Switzerland, where premium income increased by 7% during the first six months of the year. The company also reported gains in fee-based business activities and improvements in several operational performance indicators. Executives said the results demonstrate that the current strategic program remains on track while providing a foundation for future expansion.

Chief Executive Officer Matthias Aellig said the insurer intends to continue expanding beyond the goals established under its current “Swiss Life 2027” strategy. Company leadership believes future growth opportunities will increasingly depend on digitalization, automation, and operational simplification, factors that are driving the decision to streamline parts of the workforce.

The move reflects a broader trend across the global financial services industry. Insurers, banks, and asset managers have been investing heavily in technology platforms, artificial intelligence, automation systems, and digital customer services in an effort to reduce costs and improve efficiency. While these investments often create new opportunities in technology-related fields, they can also reduce demand for certain traditional administrative and operational roles.

For Swiss Life, the restructuring appears designed to balance growth ambitions with profitability targets. The company has repeatedly emphasized its objective of maintaining strong returns for shareholders while adapting to changing customer expectations and evolving market conditions. Executives have indicated that improving organizational agility is becoming increasingly important as competition intensifies across European financial services markets.

Alongside the workforce announcement, Swiss Life revealed a new share buyback program worth CHF 250 million. The initiative follows the successful completion of a previous CHF 750 million share repurchase program earlier this year. Share buybacks are commonly used by publicly traded companies to return capital to investors and can signal management’s confidence in future financial performance.

The insurer’s asset management division remains an important part of its growth strategy. Assets under management for third-party clients increased significantly during the reporting period, reaching approximately CHF 158 billion. Although net new asset inflows were lower than the exceptionally strong levels recorded a year earlier, the business continued to contribute meaningfully to group earnings.

Industry analysts note that workforce reductions announced during periods of profitability often generate public scrutiny because they occur even as companies report positive financial results. Corporate leaders typically argue that such actions are necessary to maintain competitiveness over the long term, particularly in industries experiencing technological transformation. The ultimate success of these programs generally depends on whether efficiency gains translate into sustainable business growth without undermining customer service or operational performance.

Swiss Life employs approximately 11,000 people worldwide and operates across several major European markets, including Switzerland, France, Germany, and international financial centers. The company also maintains a substantial network of financial advisors and distribution partners serving individual and corporate clients.

While the planned reduction represents a relatively small share of the insurer’s overall workforce, the announcement highlights the continuing evolution of the insurance sector. As digital tools reshape how financial products are sold, managed, and serviced, many firms are reassessing staffing structures to align with future business models.

For employees, investors, and industry observers, the coming years will provide a clearer indication of whether Swiss Life’s strategy delivers the efficiency improvements and growth opportunities management expects. For now, the company is positioning the workforce reduction as one element of a broader transformation effort intended to support expansion beyond its current strategic cycle while maintaining financial strength in a rapidly changing marketplace.