Metlife trimming costs- shifting 2,600 employees – MET, BAC, DUK & AIG
Northern, WI 03/08/2013 (gdpwatch) – In a cost-cutting drive, Steven Kandarin, the Metlife Inc (NYSE:MET) Chief Executive Officer, is relocating workers to North Carolina. The company already has a home and auto operation there and is not sure about the exact number of employees who would be moved and how many new hires would be inducted. The U.S retail business administrators will be in Charlotte while Cary will be the base for a few operations and technology employees said a MetLife spokesperson John Calagna. Bank of America Corp (NYSE:BAC) and Duke Energy Corp (NYSE:DUK) are also in the same area. The real-estate demand in Charlotte is increasing and the fourth quarter saw the vacancy rate falling to 12.1 percent from the 12.9 percent that it stood at a year earlier.
Shift serves dual motive
By 2015 the company will have 2,600 employees in the state said Pat McCrory the Governor. The cost-cut target that has been set by Kandarin is $600 million, most of which will be in the U.S at the insurer based in New York as profits are taking a hit due to low interest rates. As of Dec 31, MetLife had 64,000 employees and was down from the 67,000 that it stood at a year earlier. This move will help in creating a central location for all employees who are involved in the running of the U.S retail business. It will also lead to the creation of a new technology hub said Calagna. He said that the teams who work together should actually be collaborating and the company is looking at operating out of fewer locations.
The insurer is reducing space in several cities across the country and Boston, California and New Jersey are on the list. In December American International Group Inc (NYSE:AIG) repaid a U.S bailout. Similar to Metlife Inc (NYSE:MET), it is also cutting costs by moving its employees to locations that are more low-cost said Robert Benmosche the Chief Executive Officer.
Shares of Metlife Inc (NYSE:MET) went up by 1.83% to close at $37.21
Shares of Bank of America Corp (NYSE:BAC) went up by 2.85% to close at $12.26
Shares of Duke Energy Corp (NYSE:DUK) were down by 0.47% to close at $69.55
Shares of American International Group Inc (NYSE:AIG) went up by 1.46% to close at $39.01