Allianz layoffs: German insurance giant to cut up to 1,800 jobs amid growing use of AI

Artificial intelligence is claiming another wave of white-collar jobs. German insurance giant Allianz plans to eliminate up to 1,800 positions in its travel insurance business over the next 12 to 18 months as it automates more customer service and claims work using AI.

The planned cuts affect Allianz Partners, the company’s travel insurance division, where between 1,500 and 1,800 roles are expected to be eliminated, according to a source familiar with the matter who spoke to Reuters. Allianz Partners employs about 22,600 people worldwide, including roughly 14,000 employees who handle customer inquiries and insurance claims by phone.

Reuters reported that Tomas Kunzmann, CEO of Allianz Partners, confirmed the planned workforce reduction during an internal event on Tuesday evening after the news outlet first reported the plans. German industry publication Versicherungsmonitor later reported the same development.

The job reductions reflect a wider shift across the insurance industry as AI takes over work that has traditionally required large customer support teams. Advances in generative AI and automation are allowing insurers to process claims faster, answer routine customer questions, and reduce manual administrative work that once depended on thousands of call center employees.

Allianz declined to comment directly on the reported number of job cuts. In a statement, Allianz Partners said it is reviewing how technological advances will affect its workforce and acknowledged that the changes could “also impact roles that are currently heavily reliant on manual processes.”

The company added that confidential discussions with employee representatives and works councils are underway before any final decisions are made.

The announcement adds Allianz to a growing list of global companies trimming headcount as AI reshapes office work. Over the past year, banks, technology firms, consulting companies, and customer service organizations have increasingly cited AI as a reason to reduce hiring or eliminate roles once handled by human workers.

For Allianz, the restructuring marks another sign that AI is moving beyond pilot projects and into core business operations, where it is beginning to reshape how customer service and claims processing are handled across one of the world’s largest insurance companies.