Swiss Re, the Zurich-based reinsurance group, is set to reduce its workforce by over a fifth by the end of next year following the $7.4bn (€5.8bn) takeover of General Electric's insurance business.

In a statement released today, the reinsurer said it would reduce its employees following an overhaul of the group's structure "through lay-offs and natural attrition" by the end of 2007.