An insurance and asset management behemoth is looking to trim its headcount amid automation and AI adoption.
A source familiar with the matter says Allianz is planning to trim its workforce by up to 1,800 in its travel department in the coming months, reports Reuters.
According to the source, call center jobs will be the most impacted as the company moves to integrate AI into its workflows and replace processes that can be easily automated.
Over the next 12 to 18 months, Allianz Partners is expected to remove 1,500 to 1,800 positions. Allianz Partners has a workforce of 22,000 employees. About 63% of the firm’s labor force, or 14,000, work to handle customer queries and claims by phone.
Allianz is an insurance and asset management firm overseeing more than $2 trillion in client assets.
Recently, tech firm HP announced that it plans to reduce its employee headcount by 4,000 to 6,000 by the end of fiscal 2026. HP CFO Karen Parkhill said that the firm is mitigating costs while investing in AI to improve customer satisfaction, accelerate product development and boost productivity.
Earlier this month, outplacement firm Challenger, Gray & Christmas found that US firms announced 153,074 job cuts in October due to AI adoption, rising costs and softening demand.
“October’s pace of job cutting was much higher than average for the month. Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes. Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”
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