AIG Reports Third Quarter Revenue Loss; Top-Level Job Cuts Expected
American International Group Inc. or AIG, the American multinational insurance corporation reported loss in the Q3. The company also announced that it will trim jobs. The insurer is also facing pressure from shareholders Carl Icahn and John Paulson to split the company.
According to AIG, the main reasons behind the quarterly loss of net $231 million are due to lesser income from some of the investments as well as the highly volatile markets globally. One year back, in the same quarter, the company had posted profit of $2.19 billion.
A person who has knowledge of the matter said, AIG plans jobs cuts in series where approximately three to four hundred senior-management positions are likely to be eliminated. The layoffs would represent about twenty percent of the top-level positions according to the person with knowledge of matters. There are further reductions in jobs that are expected next year.
The announcements of job cuts and profit pullback come at a time when Icahn and Paulson are asking the company to look into a three-way split in order to increase the stocks of the company and get away from the regulations that have been imposed by the policy making federal authorities.
New Zealand News
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