American International Group Inc. (AIG) announced net job reductions totaling approximately 1,500 over the next 12 to 18 months. The staff cuts result from the integration of American General Corporation as a wholly owned subsidiary of AIG and will affect several AIG and AGC locations in the U.S.
AIG also announced changes in the new senior management team and operational structure. AIG chairman M.R. Greenberg will replace Robert M. Devlin as chairman of American General. Devlin, who resigned, will serve as a consultant to AIG. The domestic life insurance businesses of AIG and American General will be combined under American General and will be led by Rodney O. Martin Jr., former senior vice chairman of Financial Services for American General. Martin will become president and CEO of the newly realigned American General and will report to Greenberg.
American General Retirement Services will be combined with SunAmerica Inc. and John A. Graf, former senior vice chairman of Asset Accumulation for American General, will join SunAmerica as vice chairman, reporting to Jay Wintrob, SunAmerica president and CEO.
American General Finance will become part of AIG’s Financial Services Group, with Frederick W. Geissinger continuing to lead American General Finance. He will report to William N. Dooley, AIG senior vice president, Financial Services.
American General Investment Management will become part of AIG Global Investment Group Inc. Richard W. Scott, former vice chairman of Investment Management for American General, will join AIG Global Investment Corp. as senior managing director and head of U.S. Fixed Income, reporting to Win J. Neuger, AIG senior vice president and chief investment officer.
AIG’s total worldwide employment, including American General employees, is currently at about 85,000.
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