NU Online News Service
A financial services company says it has implemented plans announced in December 2008 to reduce the size of its workforce by about 14%.
Genworth Financial Inc., Richmond, Va., laid off about 1,000 of its 7,300 employees Thursday, the company says.
Genworth first warned about the layoffs Dec. 17, 2008.
The cuts return company employment to 2004 levels, according to Genworth Chairman Michael Fraizer.
Genworth wants to continue its long term care product lines, by increasing sales of LTC insurance and of packages that combine LTC benefits with other products, Fraizer writes in a letter on the Genworth Web site addressed to customers, distributors and partners.
Genworth also wants to continue to focus on selling fixed immediate annuities to middle-market customers, and it will continue to sell life insurance, group annuities and Medicare supplement insurance through independent advisors, Fraizer writes.
“We will continue to sell variable and fixed deferred annuities, but will do so more selectively, through the channels, distributors, and advisors that are aligned with our refined strategy and risk appetite, Fraizer writes.
Genworth wants to continue to provide good service to “policyholders, key advisors and distributors,” and it has tried to achieve that goal by shifting to “a streamlined functional organization that brings together business teams into integrated product, marketing and distribution, and service groups,” Fraizer writes.
Genworth will re-focus its U.S. mortgage insurance operations and cut back on efforts to expand mortgage insurance operations in emerging markets, Fraizer writes.
The investments team will focus on investing in “high-quality, fixed-income instruments that provide a regular, stable income stream,” Fraizer writes.