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Compis Group has to reduce staff. With 180 employees, the Compis.ch comparison service accounts for about 10 percent of all jobs, which means at least 18 full-time positions. Legally, this is equivalent to mass dismissal. Layoffs continue at the service company Decisis Holding AG.
Comparis spokesperson Felix Schneuwly explained to Blick that the exact number of affected areas has yet to be defined. Despite the dismantling, it is assumed that the existing range of services can be maintained “as far as possible”. A “socially acceptable” solution must be found for all affected employees.
What causes massive layoffs?
The reduction is due to the board’s “downward correction of Comparis’ growth strategy” and having to drastically reduce its cost base, as stated in a statement. After a steady decline in profitability, Comparis Group slipped into the red in 2022. This is due to “significant increase in costs” and “stagnating level of sales”.
But that’s not all. The company warns that there is another risk of loss in 2023. This is where the Financial Markets Authority (Finma) comes in. This has been in dispute with Comparis since 2019. Finma first threatened Comparis to confiscate all profits from Comparis.ch AG’s address brokerage in the insurance industry since 2015. This forces Comparis to create provisions in millions as a precaution. As a result, the absorption of red numbers by natural fluctuations is no longer conceivable, according to Schneuwly.
Business model questioned due to Finma investigation
At the center of the dispute between Finma and Comparis is the question of whether the comparison service should register as an insurance broker. Comparis categorically denies this. “On the one hand, we would be faced with a flood of bureaucracy, and on the other hand, we would be at a competitive disadvantage compared to our main competitor, Google,” Schneuwly says.
The search engine giant also raises money to place consumers with providers, but they are not required to register. While the main question has yet to be legally clarified, Comparis is also uncomfortable with Finma’s menacing. Schneuwly states that Comparis sees no reason to change its business model: “Unlike traditional brokers, everything is public here. No need for control.”
Finma remains silent about the Comparis case when asked by Blick.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
