Insurance Australia Group (IAG) has revealed plans to cut 214 jobs within its Direct Insurance Australia and Intermediated Insurance Australia divisions, even as the company reported robust financial results for 2024. The announcement comes amid a broader restructuring initiative that commenced in March.
The ASX-listed company, which generated a full-year net profit of A$898 million ($605.10 million), an increase of 7.9% from the previous year, has come under scrutiny following the job reduction announcement. Insurance profits soared to A$1.43 billion ($0.96 billion), representing a staggering 79.1% rise.
The Finance Sector Union (FSU) criticized IAG’s decision, arguing that there was no legitimate business justification for the cuts, especially in light of the company’s impressive performance. FSU National Secretary Julia Angrisano expressed concern over the impact on loyal employees who supported IAG during challenging periods, including the COVID-19 pandemic and various natural disasters.
IAG CEO Nick Hawkins had previously highlighted operational enhancements as a key factor in the company’s profitability and acknowledged the vital role of staff contributions to its success.
The current job cuts are part of a restructuring plan aimed at consolidating IAG’s Customer Growth and Distribution business units and integrating its Partners and Platforms team into Retail Insurance Australia. An IAG spokesperson clarified that the changes aim to align teams and enhance operational processes, emphasizing that no frontline customer claims roles would be impacted.
The company is now consulting with affected employees and is offering redeployment opportunities as part of the transition.
(Note: The exchange rate stands at $1.00 = A$1.48.)
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