French insurance group Axa is planning to move 1,500 jobs to Morocco as part of a drive to double operating profit by 2012, according to a report in French newspaper Los Echos.
The company is also planning to create 1,500 further administration jobs in France. However, French trade unions will be concerned about the offshore proposition.
While ambition 2012 is about meeting quantifiable objectives – doubling our revenues and tripling our underlying earnings – it is also and above all our way of expressing confidence in our people and our core business, said Henri de Castries, chairman of the management board of Axa, in the company’s 2005 annual report.
Offshoring has been slow to take hold in many western European countries, especially France, which has strict labor laws, making it costly for companies to fire workers. It is also restricted by language capabilities, as French-speaking skills are not abundant in India, and Morocco is therefore well placed to serve the French market.
It has also been reported that Axa has slightly increased its shareholding in German reinsurance company Munich Re from below 5% to 5.59%.