Genworth to cut 250 jobs

Published June 7, 2013 by Jessica Sabbath

Genworth Financial Inc. announced it will cut 250 jobs to reduce expenses.

A company spokesman said fewer than 100 job losses would occur in Richmond, while fewer than 50 would occur in Lynchburg. The remaining 100 will be cut from Genworth locations throughout the U.S. and Europe.

The company announced it is eliminating a total of 400 positions, including 150 open positions that will not be filled. The company said it would also reduce related information technology and program
spending.

Once fully implemented, the company expects to save $80 million to $90 million in annual pre-tax expense savings. A pre-tax non-operating charge of $15 million to $20 million will be recorded in the second quarter of this year to reflect severance, outplacement and related costs.

“These are very difficult decisions to make but the changes are essential to our ongoing work to improve the performance of our businesses and deliver value to our shareholders,” Tom McInerney, president and CEO, said in a statement. “Our organization will remain sharply focused on our priorities as we make further progress on operating our businesses as efficiently and effectively as possible.”