NEW YORK, Dec 9 (Reuters) - Principal Financial Group said on Tuesday it will cut 550 jobs, citing deterioration in U.S. and global financial markets.
Principal, a provider of retirement plans, life and health insurance, said 300 of the eliminated positions are being made at its headquarters in Des Moines, Iowa, and the rest throughout 45 other locations.
The cuts will reduce the insurer's workforce by about 3.5 percent, Principal said.
The job cuts will take effect on Dec. 31, and the company said it will pay severance to those affected.
'Since September when market conditions worsened, we have been continuously reviewing expenses and expected revenues. In order to bring expenses more in line with projected revenues, we have already cut many expenses. Unfortunately, this must include eliminating some jobs,' said Mary O'Keefe, senior vice president, in a company statement.
Companies that sell life insurance and retirement products have seen their capital eroded in recent months by heavy investment losses. Several have raised capital, and others are trying to obtain federal funds under the government's $700 billion bailout.
Principal, Hartford Financial, Prudential Financial and Genworth Financial are among those who have applied for federal funding.
Principal said that if approved for the program it expected to be able to borrow up to $2 billion. The company's profit tumbled 60 percent in the third quarter, hurt by losses tied to impairments on fixed income securities and equities.
(Reporting by Lilla Zuill, editing by Matthew Lewis) Keywords: PRINCIPALFINANCIAL/JOBS (lilla.zuill@thomsonreuters.com; + 1 646 223 6281) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Principal, a provider of retirement plans, life and health insurance, said 300 of the eliminated positions are being made at its headquarters in Des Moines, Iowa, and the rest throughout 45 other locations.
The cuts will reduce the insurer's workforce by about 3.5 percent, Principal said.
The job cuts will take effect on Dec. 31, and the company said it will pay severance to those affected.
'Since September when market conditions worsened, we have been continuously reviewing expenses and expected revenues. In order to bring expenses more in line with projected revenues, we have already cut many expenses. Unfortunately, this must include eliminating some jobs,' said Mary O'Keefe, senior vice president, in a company statement.
Companies that sell life insurance and retirement products have seen their capital eroded in recent months by heavy investment losses. Several have raised capital, and others are trying to obtain federal funds under the government's $700 billion bailout.
Principal, Hartford Financial, Prudential Financial and Genworth Financial are among those who have applied for federal funding.
Principal said that if approved for the program it expected to be able to borrow up to $2 billion. The company's profit tumbled 60 percent in the third quarter, hurt by losses tied to impairments on fixed income securities and equities.
(Reporting by Lilla Zuill, editing by Matthew Lewis) Keywords: PRINCIPALFINANCIAL/JOBS (lilla.zuill@thomsonreuters.com; + 1 646 223 6281) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.