German reinsurer Munich Re is all set to cut approximately 900 jobs in coming months as part of its strategy to bolster its profitability.

According to the plan, nearly 450 redundancies will be made at the firm’s Munich headquarters while the remaining cuts will take place in the US. Munich Re employs nearly 43,000 staff in 30 countries.

Munich Re CEO Joachim Wenning said that the cuts will enable the company to slash operational expenses by about €200m by 2020.

Wenning added that the job reductions in Germany would be executed through early and part-time retirement schemes in addition to voluntary redundancies that will run for six months.

Through the proposed staff reduction plan, the reinsurer hopes to achieve a third of its expected reinsurance profit growth by 2020, while the remaining two thirds of profits is expected to be achieved by generating revenues.

With these measures in place, the company aims to increase net profits to between €2.1bn and €2.5bn this year, as against guidance of €2bn to €2.4bn it gave last month while announcing its 2017 results.

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Munich Re’s profits fell by 85% year-on-year last year to €375m dues to series of natural disasters.