AXA’s $15 billion acquisition of XL Group last fall will lead to further integration, consolidation and job cuts, according to a draft plan the company released on Feb. 12.

The Axa SA logo sits outside the company’s headquarters in Paris, France. Photographer: Antoine Antoniol/Bloomberg

The M&A deal between the two companies transformed XL Group into AXA XL, and AXA since then has been working on integrating AXA Corporate Solutions, AXA Matrix, AXA Art and XL Catlin under that single umbrella. According to the draft plan, as many as 711 jobs in Europe will be eliminated out of a total of 9,500 employees globally, particularly in France, Italy, Germany and the U.K. To accomplish this, some positions may be “redeployed” internally, or the company could rely on voluntary departures, it said.

Greg Hendrick, CEO of AXA XL, said that the combination of what were separate teams and operations under a single division is crucial to the long-term success of the combined company.

“This is a very important next step for AXA XL in its journey to become a united division,” Hendrick said in prepared remarks. “The proposed target operating model and organizational structure will help us deliver the best services to our customers and provide them with the innovative solutions they need to succeed.”

Doina Palici-Chehab, AXA Group’s chief operating officer, said the company will look after impacted employees.

“Consistent with AXA’s long-term responsible employer strategy,” AXA XL is committed to supporting its employees through the change period, and every effort will be made to assist them,” Palici-Chehab said.

Source: AXA XL