Swiss Life Cuts 600 Jobs Despite Rising Profit
The insurer earns significantly more in the first half of 2026 and simultaneously announces job cuts by the end of 2028. Approximately 300 jobs are expected to be affected in Switzerland. Swiss Life also buys back its own shares for 250 million Swiss francs.
As JournalPlus.ch had previously reported, Swiss Life plans to cut around 600 jobs. The group's half-year figures are now available, clearly illustrating the connection between growth and the savings program.
More Profit, Fewer Staff
In the first half of 2026, Swiss Life achieved a net profit of 649 million Swiss francs. This represents an 8 percent increase compared to the same period last year. Operating profit in local currencies also rose by 8 percent to 967 million Swiss francs.
The so-called fee business developed particularly strongly. Income from fees and services increased by 11 percent to 430 million Swiss francs. Premium income also rose, reaching 12.3 billion Swiss francs.
This development shows that the job cuts are not a direct result of a crisis or a business downturn. Swiss Life is earning more money. The group aims to change its structures and increase long-term efficiency.
Around 300 Jobs Affected in Switzerland
Approximately 600 jobs are to be eliminated group-wide by the end of 2028. About half of these affect Swiss Life in Switzerland. The other half applies to Swiss Life Asset Managers, primarily at international locations.
For the affected employees, this does not automatically mean termination. Swiss Life intends to achieve a large part of the reduction through natural fluctuation. Around 100 positions have already been eliminated by selectively not refilling vacant roles. An additional 100 jobs are expected to be cut by the end of 2026.
This means about 200 of the total 600 jobs will be eliminated by the end of this year or through current measures. The remaining reductions are to occur gradually until the end of 2028.
Digitalization Transforms the Insurance Sector
Swiss Life justifies the restructuring, among other reasons, with increasing digitalization. Many processes previously performed manually can now be automated. This is complemented by new opportunities through artificial intelligence, data analysis, and digital customer platforms.
This creates a difficult balancing act for insurers: they want to offer more services while reducing costs. Especially in large companies, even small efficiency gains can have significant effects on the number of required jobs.
CEO Matthias Aellig emphasizes that Swiss Life aims for profitable growth beyond the “Swiss Life 2027” strategic program. To achieve this, the company must strengthen its position and efficiency, and leverage the opportunities of digitalization.
Swiss Business Grows
A look at the home market is interesting in this context. In Switzerland, premium income rose by 7 percent to 6.75 billion Swiss francs in the first half of the year. The segment result improved by 2 percent to 469 million Swiss francs.
Therefore, the job cuts in the Swiss business cannot simply be explained by weak demand. Instead, it concerns the question of how many employees will be needed for a growing business in the future.
This is precisely the socially interesting aspect of this development: a company can grow while simultaneously reducing jobs. In a digitized economy, growth and employment no longer necessarily run in parallel.
Shareholders Also Benefit
In parallel with the savings program, Swiss Life intends to return further capital to shareholders. A share buyback program of up to 250 million Swiss francs will commence on October 1, 2026. It is scheduled to run until the end of March 2027.
Swiss Life had only just completed a 750 million Swiss franc buyback program at the end of May. The new buyback is therefore notable: while the group reviews its cost structure and cuts jobs, additional money simultaneously flows to shareholders.
Financially, Swiss Life can afford this step. Return on equity rose from 17.6 to 20.2 percent in the first half of the year, exceeding the target range of 17 to 19 percent for “Swiss Life 2027”. The estimated solvency ratio was around 215 percent at the end of June.
Not an Isolated Case in the Insurance Sector
The job cuts at Swiss Life are also part of a larger trend. The Swiss insurance industry is undergoing profound restructuring.
The merger of Helvetia and Baloise also leads to significant job reductions. The merger is expected to alter or eliminate thousands of positions globally. Companies are thus trying to eliminate redundancies, simplify structures, and make greater use of digital processes.
For employees, this development signifies a new reality: even profitable companies continuously review which activities will still be needed in their current form in the future.
What Does This Mean for Switzerland?
For the Swiss economy, this development is ambivalent. On the one hand, high profits and investments in digitalization are signs of a high-performing industry. More efficient companies can remain internationally competitive and open up new business areas in the long term.
On the other hand, the question arises as to what happens to jobs that disappear due to automation and digitalization. If insurance companies, banks, and other large employers can manage their processes with fewer staff, this also changes the Swiss labor market.
For Swiss Life, it will therefore be crucial how many of the affected employees can take on new tasks within the company. Digitalization does not necessarily mean less work – but often a different kind of work.
A Signal for the Industry
The Swiss Life case thus shows more than just a personnel decision. It exemplifies a change currently occupying many Swiss companies: How can growth continue without costs rising to the same extent?
Swiss Life answers this question with digitalization, efficiency gains, and a leaner organization. Simultaneously, with the share buyback, the group shows that its financial situation is strong enough to involve shareholders in its success.
For employees, however, the balance is less clear. Around 600 jobs are set to disappear by 2028 – even though the insurer is earning more than a year ago.
This is precisely the real story behind the numbers: The Swiss insurance industry continues to grow. But it apparently needs fewer and fewer people to do so.
Sources
- Swiss Life: Half-year figures 2026 and job cut announcement
- Swiss Life: Information on the share buyback program of 250 million Swiss francs
- SRF: Reporting on job cuts at Swiss Life
- finews: Analysis of half-year figures and planned job cuts
