A staff reduction and other strategic spending cuts are expected to yield Genworth Financial Inc. millions in expenses. Hundreds of employees are impacted.
Approximately 400 positions are being eliminated, the insurance-holding company disclosed Thursday. The reduction reflects 150 open positions that will not be filled — roughly leaving 250 layoffs.
Genworth operates a life insurance business, a mortgage insurance company and a legacy asset division. The mortgage insurance subsidiary is Genworth Mortgage Insurance Corp.
Today’s statement didn’t indicate how many mortgage insurance employees are impacted by the layoffs.
“We’ll provide support to the employees impacted and ensure they are treated with the utmost respect,” said Genworth Financial President and Chief Executive Officer Tom McInerney in the statement. “We do not believe these actions significantly change our previously disclosed views on performance in 2013, but anticipate them to have a more meaningful impact in future years.”
In April, Genworth Financial sold reverse mortgage subsidiary Genworth Financial Home Equity to Ocwen Financial Corp. That business now operates as Liberty Home Equity Solutions Inc.
Factoring in planned cuts in technology spending, as much as $90 million in pre-tax benefit is expected annually from the staff reduction. As much as $20 million in second-quarter charges could result from the move.
