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AIG Continues with Job Cuts; Warns 242 in New York Next to Go

By | March 23, 2016

  • March 23, 2016 at 9:59 am
    Raul says:
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    Right before the end of the quarter, must be warning us the 1st quarter results are going to be a disaster. Peter Hancock and all his cronies he brought in should be next to go.

    • May 4, 2016 at 9:35 am
      Agent says:
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      Raul, your prediction was right. Since this article was published, another announcement that they took a bath on investments for another multi-million loss.

  • March 23, 2016 at 1:32 pm
    Jack Kanauph says:
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    This is what sux about being a public company. Outside credit forces are making the company do things that aren’t necessarily the best moves. Just to improve profits, they may be letting go very good people in NYC and replacing with less expensive staff that maybe aren’t as good.

    • March 23, 2016 at 1:42 pm
      wayne smith says:
      Hot debate. What do you think?
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      Just to improve profits? Um, that’s the purpose of an employer. If they can make a good case for making more profit with more expensive staff, I trust they can do so.

      • March 25, 2016 at 5:11 pm
        applied says:
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        Not exactly. An employer’s purpose is multifaceted.

        An employer should provide a product or service that benefit a society, it should provide a stable job that enables its employees to build a comfortable life, and it should accomplish that by operating its business at a reasonable margin.

        It is shortsightedness, such as believing that near term profit is the only purpose of a company, that benefits no one and ultimately destroys a company. Only companies with a long term vision, and a resolve to stand against the short term temptations of quarter-to-quarter earnings driven decision making, will survive.

    • March 23, 2016 at 2:57 pm
      Agent says:
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      Another AIG success story Jack? We have had plenty of these lately. The chickens are coming home to roost even post bailout.

  • March 23, 2016 at 1:44 pm
    O. Dear says:
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    Best wishes to those who are going to be 86’d by the layoffs and Lord help those who are over 50. The last job insurance I interviewed for, well, they never let me know one way or another. But they had told my friend after working there for a year, if they’d known how old (s)he was, they never would have hired her/him. And that’s HR, stating it directly to said employee. Brazen!

  • March 23, 2016 at 5:22 pm
    Dave says:
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    The poor results that AIG has experienced that has resulted in the need of increasing reserves time and time again, were provided by the people working there in a produce at any cost atmosphere developed by Hank. Who is to blame for that? Hank and all those who accepted that philosophy. If somebody contributed to their bad results, are they “owed” a job?

  • March 23, 2016 at 7:06 pm
    Chris Dickerson says:
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    This is the way it works: Carl Icahn comes in and destroys companies. I once worked for TWA, a first class airline and Icahn comes along as destroys it. Meanwhile, he has private planes, huge mansions in several locations and yachts to cruise around the oceans in. He could care less about the peoples lives he destroys. I think it’s despicable that he does this to long term AIG employees who devoted their lives to the company. I’m glad I don’t work there.

    • March 24, 2016 at 10:05 am
      Agent says:
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      Some might say that Hank Greenberg and successors had something to do with the demise of the AIG Group. They have been in one form of trouble or another for the last 20 years.

      • March 25, 2016 at 7:47 pm
        Don't Call Me Shirley says:
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        So why do you think they deserve a tax cut?

  • March 24, 2016 at 9:55 am
    Yogi Polar Berra says:
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    Two things should be considered which weren’t explicitly mentioned above.

    First, is US Govt bailout money being used to ‘buy’ or retain business at US taxpayers expense. The bailout was repaid. But it was likely used perversely (‘burned’) to keep business at a loss that is now returning as reserve strengthening. Who were their CFO(s), CEO(s), and reserve certification signers/ auditors during this century?

    The second issue is reinsurance deals. Were they changed in response to ongoing consolidations in that industry? AIG (ab)used smaller reinsurers in the past to improve or protect their results. Are current, larger, perhaps wiser, reinsurers more savvy and wary of partnering with AIG than past sets? Did the AIG-Greenberg-General Re love triangle and subsequent divorce forced by Empire Club member Elliot Spitzer scare away some willing reinsurers?

    There are two ways to look at the staffing issue; they are too heavy and they are just right. Outsiders often think over-staffing is a problem without doing proper diligence. I could be swayed, but need more proof. An independent opinion is needed, not one from Icahn or AIG employees.

  • March 24, 2016 at 10:09 am
    Agent says:
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    Good one Yogi. How about some more from your namesake?

    “You wouldn’t have won if we’d beaten you”.

    “We made too many wrong mistakes”.

    “You can observe a lot by watching”.

  • March 24, 2016 at 10:28 am
    Cisco says:
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    AIG is bailing on NYC and moving to Dallas because really who wants to be in NYC any more.

    • March 24, 2016 at 11:11 am
      Agent says:
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      Cisco, it is strange that I have not seen that move in the offings. Now, we did see that GEICO is expanding in DFW and of course, Liberty Mutual opening a large 4,000 employee office in Plano. However, I wouldn’t blame them for moving from NYC to anywhere else.

    • March 24, 2016 at 12:01 pm
      Yogi Polar Berra says:
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      (reply to Cisco and by request, for Agent): NYC is getting so popular and crowded that no one goes there anymore.

      • March 25, 2016 at 9:13 am
        Dave says:
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        Isn’t that a Yogi Berraism?

        • March 25, 2016 at 11:32 am
          Rosenblatt says:
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          Yes Dave, but the original quote was about a restaurant.

          • March 25, 2016 at 12:06 pm
            Rosenblatt says:
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            Rosendisclaimer – I’m not knocking YPB for changing the quote to apply to the conversation!

          • March 25, 2016 at 4:40 pm
            Yogi Polar Berra says:
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            Correct. I adapted it to the chat on AIG moving some jobs out of NYC. Those to be relocated will ‘come upon a fork and take it’ to a NJ or CT AIG office.

          • March 28, 2016 at 9:43 am
            Agent says:
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            Pair up in threes!

            Why buy good luggage, you only use it to travel. YB

  • March 24, 2016 at 10:34 pm
    former AIG employee says:
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    I’ve been terminated in January,
    My co-workers couldn’t understand why I was so happy

    • March 28, 2016 at 10:49 am
      Yogi Polar Berra says:
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      You must be referring to your new co-workers, or high level AIG co-workers.

    • March 28, 2016 at 12:16 pm
      One of the Low Cost regions says:
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      Change is inevitable, change without well drawn strategy and planning is not going to resolve anything and creates disfunction. I would take a package in a heartbeat.

      • March 28, 2016 at 9:34 pm
        former AIG employee says:
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        I didn’t even “Bat-an-Eye”
        Waves off layoffs always hanging over your head.
        FI Divisions, 95% turn over of personnel. (every few months or so, & I’m not exaggerating)
        After 20yrs, the grass is way way way greener on the other lawns.

    • March 28, 2016 at 1:04 pm
      Agent says:
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      So are you drawing unemployment or did you catch on with a competitor? Uncle Warren has been hiring former AIG employees I hear.

  • April 4, 2016 at 9:31 am
    Former AIG Employee says:
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    It is well known that labor represents the largest cost to doing business. Historically, businesses have eliminated staff to lower operating costs. Staff reductions are a symptom of a larger problem. In this instance, the problem is multifactorial not unitary. To quote a famous person, things are going to get a lot worse before they get worse.

    • April 4, 2016 at 10:09 am
      Dave says:
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      The largest cost of doing business in insurance is insured losses as AIG is finding out having to increase under-reserved losses by $3.6 billion.

  • April 10, 2016 at 1:21 am
    BuhBye says:
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    AIG’s layoffs were done with no thought ….best and brightest let go, while many overpaid still sit there with nothing to do, wondering why they are still there.

  • April 20, 2016 at 11:51 am
    March Madness says:
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    My husband was with AIG for 15 1/2 years. Rose through the ranks and worked 24/7 throughout his career there. The thanks he received was being layed off at an age where we all know will be very difficult to get another job in his IT Project Management Field. However, one of the employees who reported directly to my husband put in writing to the powers to be that HE WANTED TO TAKE A SEVERANCE PACKAGE as to save someone elses’ job (this employee is 73 years young) and he did NOT even get a response to his request and is still gainfully employed. Go figure? These are the type of people that run AIG, no wonder they are losing money.

    • April 20, 2016 at 10:05 pm
      Dave says:
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      Hancock is a Wall Street bean counter. No experience whatsoever in runing an insurance operation prior to AIG. Go figure.

  • May 3, 2016 at 10:05 pm
    Current AIG Employee says:
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    I’m currently working in AIG. I can’t wait to be included in the next lay off. The people here are heartless.

  • September 8, 2016 at 10:54 pm
    Ex employee says:
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    Got laid off over two years ago at the age of 58. Could not be happier. Hated everyday with them.

  • November 5, 2016 at 11:51 am
    Ex employee says:
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    Was laid off 2 years ago. Managers are a bunch of cowards. They do not use common sense. So glad I was out of that s… hole. GL to all of you who are still there. The writings are on the wall. Polish up that resume and move on. This is not the company you want to spend your long term career. Look elsewhere.

    Cutting cost is not the only solution to show a short term profit. After a while, you will run out of resources to cut. Thinking long term and invest in your employees will go a long way.



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