ING And CNA Announce
3,450 In Job Cuts
The ING Groep N.V. and CNA Financial Corp. last week announced sweeping reorganizations and a total of 3,450 in U.S. job cuts.
ING, Amsterdam, says it will slash travel and technology expenses, reduce use of consultants, strive for “operating synergies,” and eliminate 15% of the 10,700 jobs in its newly expanded U.S. operations.
Severance costs will exceed $75 million, but the cuts should save $250 million a year, ING says.
ING acquired ReliaStar Financial Corp., Minneapolis and the financial services and international divisions of Aetna Inc., Hartford, a year ago and added them to existing U.S. operations.
Since then, the U.S. operations have reported that sales of mutual funds and variable annuities are down. ReliaStar is facing $140 million in reinsurance losses resulting from the Sept. 11 attacks.
CNA, Chicago, which is facing $468 million in Sept. 11 losses, even after reinsurance is included, says it will eliminate 1,850 of 16,500 jobs and close 101 of 169 offices.
CNA is also discontinuing its variable life and annuity businesses.
CNA expects to spend $50 million on expenses related to the layoffs, and another $60 million on other restructuring expenses.
The largest number of layoffs will occur at the Chicago headquarters, CNA says.
The new CNA organization consists of three major businesses: Life/Group; Property/Casualty; and Reinsurance Operations.
Although CNA will close offices, it says it will continue to have offices in 63 of the 68 cities where it has offices today.
Reproduced from National Underwriter Life & Health/Financial Services Edition, December 10, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.