AIG cuts jobs, head count now trails MetLife – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS PODCAST

AIG cuts jobs, head count now trails MetLife

NEW YORK (Bloomberg) American International Group Inc. cut its workforce by more than a third last year as the bailed-out insurer sold profitable units, including one to rival MetLife Inc., which now has more employees.

AIG had about 63,000 workers as of December 31, the New York- based firm said in a regulatory filing last week, a 34 percent drop from a year earlier. MetLife, the largest US life insurer, ended the year with 66,000 employees, a 22 percent increase, as it bought American Life Insurance Co., or Alico, from AIG.

Chief executive officer Robert Benmosche, 66, is reducing AIG's workforce as he dismantles a company that Maurice(Hank) Greenberg built with $50 billion in acquisitions in his four decades leading the firm through 2005. AIG has announced more than 30 asset sales including an initial public offering of AIA Group Ltd., its main Asian life business, since taking a US bailout that has swelled to $182.3 billion.

“A large portion of that reduction in workforce is just through those divestitures,” said Jonathan Hatcher, an analyst at Jefferies Group Inc., in an interview. AIG and the US government have sought to simplify the company “to remove it from the too-big-to-fail category”.

In addition to asset sales, AIG also shuttered Hong Kong and Tokyo offices of the derivatives unit that brought the company to the brink of collapse with bets on mortgages. AIG, which had as many as 116,000 employees at its peak in 2008, last week reported its first profit in three quarters on gains from asset sales. AIG's net income exceeded $11 billion for the three months ended December 31, compared with a loss of $8.87 billion in the same period a year earlier.

You must be Registered or to post comment or to vote.

Published March 01, 2011 at 1:00 am (Updated March 01, 2011 at 9:18 am)

AIG cuts jobs, head count now trails MetLife

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon