Allianz to cut up to 1,800 jobs due to growing use of AI

Allianz will cut up to 1,800 jobs in its travel insurance division as the growing use of artificial intelligence reshapes its operations. The move was confirmed by Tomas Kunzmann, Chief Executive Officer of Allianz Partners, on Tuesday, following an earlier Reuters report.

The announcement adds to a growing list of workforce reductions across industries as companies increasingly deploy AI to automate processes and improve operational efficiency.

AI adoption drives workforce reduction

The planned job cuts will take place within Allianz Partners, the group's travel insurance business.

Kunzmann confirmed the decision, saying the reductions are linked to the increasing use of AI across the division. Reuters did not disclose the timeline for the layoffs or specify which locations would be affected.

The announcement reflects how insurers are incorporating AI into customer service, claims processing and administrative functions to streamline operations.

Key details

• Up to 1,800 jobs will be eliminated.
• The cuts will affect Allianz Partners, the company's travel insurance division.
• Tomas Kunzmann, CEO of Allianz Partners, confirmed the decision.
• The company attributed the workforce reduction to the growing use of artificial intelligence.

Part of a wider shift across industries

The latest move comes as businesses across financial services and technology continue to increase investment in AI while reviewing workforce requirements.

Companies have been deploying AI to improve productivity, automate routine work and reduce operational costs. The trend has prompted organisational restructuring across multiple sectors, particularly in functions where repetitive processes can be supported by AI tools.

Allianz's decision highlights how the insurance industry is also adapting to these technological changes as digital capabilities become more central to day-to-day operations.