Prudential to cut senior leader positions amid cost-cutting push
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Prudential said the 243 jobs cut will reduce the number of management layers by one-third.
PHOTO: BLOOMBERG
New York – Prudential Financial plans to cut 243 positions as it seeks to curb costs – the latest step in the life insurer’s years-long overhaul.
The company expects the effort to reduce the number of management layers by one-third, chief executive Charlie Lowrey said in a memo to staff seen by Bloomberg.
The cuts will impact different levels of senior vice-presidents and vice-presidents, Mr Lowrey said.
“Unnecessary complexity slows us down and adds to our operating costs,” Mr Lowrey said in the memo. “We have therefore embarked on a comprehensive effort to simplify our organisational design beginning with a significant reduction in the number of senior leaders.”
Prudential said the cuts, along with a “limited number of changes below these levels” will be announced in coming days, according to the memo.
The company confirmed the contents of the memo.
Prudential unveiled a strategy at the beginning of 2021 meant to transform the company through deals, cost savings and share buybacks.
Mr Lowrey has overseen moves away from market-sensitive businesses, including part of a variable annuities block the company has sold.
Prudential also reported third-quarter results on Wednesday, with profit of US$3.44 a share that topped analyst estimates.
Before adjustments, the company recorded a net loss of US$2.49 billion (S$3.4 billion), excluding taxes tied to investment losses, related charges and adjustments.
Those losses were largely a function of the impact of higher rates, according to the statement.
Prudential reported US$10.1 billion of revenue, missing the US$13 billion analysts expected
Its global asset management business, PGIM, saw adjusted operating income fall to US$211 million from US$219 million a year earlier, due to lower agency and seed and co-investment income as well as higher expenses.
Total assets under management at the unit dipped from the previous quarter to about US$1.22 trillion on both institutional and retail outflows. BLOOMBERG
