AIG plans to cut global workforce by about 1,900 jobs
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American International Group Inc. expects to trim its global workforce by about 3%, or roughly 1,900 jobs, according to an internal company memorandum.
In the memo, CEO Robert Benmosche informed employees on Thursday of the plan to cut jobs.
“With results today, we announced a $265 million severance charge taken at the end of 2013, which we expect will reduce AIG's global workforce by approximately 3%” Mr. Benmosche said in the document.
The New York-based insurer has about 63,000 employees worldwide, according to its website, putting the projected job reductions at about 1,900 people.
An AIG spokesman on Friday declined to comment when asked about specific details of the job cuts.
The memo about the workforce reduction went on to refer to “changes” which the company may need to make to achieve its goals of “continued growth and profitability.”
“To accomplish this, in many parts of the organization, we will need to make some changes. We know that this will mean some changes in roles and in reporting structure, and that some roles will have to be eliminated,” Mr. Benmosche said.
Business and function leaders will “take a fresh look at streamlining and simplifying AIG,” the CEO said.
“Ultimately, we know that simplifying AIG will help you work more effectively, be more empowered to make decisions, and to be more informed.”
AIG swung to a fourth quarter 2013 profit of $1.98 billion from a loss of $3.69 billion during the year-ago period, reflecting light catastrophe losses, the company said Thursday.
