CANBERRA, March 9 (Xinhua) -- About 600 jobs would be cut over the next three years as part of the changes simplifying structure and removing duplication, CGU chief executive Peter Harmer said on Friday.
"Where possible, we will be managing the reductions in roles through natural attrition," Harmer said in a statement. "We are very conscious of the impact that these changes will have on our employees and will be actively supporting them through this transition."
CGU is an intermediary-based insurance company that offers personal, small business and corporate insurance, plus workers compensation. It is owned by IAG, which also owns the NRMA business, the most famous and popular insurance company in Australia.
IAG says the changes to the business are being made to simplify its structure and to remove duplication in its processes.
The changes to CGU will initially save IAG about 25 million dollars (26.75 million U.S. dollars), pre-tax, in the 2012/13 financial year, which will improve the company's financial performance, IAG chief executive Mike Wilkins said in a statement.
The changes will also save IAG about 65 million dollars (69.55 million U.S. dollars) annually, pre-tax, by the end of the 2014/15 financial year, he said.
Australia's jobless rate rose up to 5.2 percent in February as forecast by economists with 15,400 job losses in the month, the nation's statistic bureau released on Thursday. Many big companies such as Qantas airline, Holden cars have been cutting jobs since end of last year due to flat economy in Australia.
