(Bloomberg) -- American International Group Inc.Chief Executive Officer Peter Hancock, who is shrinking the companywhile fighting off an activist investor, told staff that they can’tall count on lifetime employment with the insurer, according topeople familiar with his remarks.
||Hancock made the comments Tuesday in a town hall meeting thatwas broadcast to staff, said the people, who asked not to beidentified discussing internal communication.
|Hancock said the expectation of shorter careers is a shiftfor AIG, and the insurer will still focus on professionaldevelopment that will help staff succeed at other firms, said oneof the people.
|The CEO is under pressure to cut costs after posting athird-quarter loss Monday.
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|Activist investor Carl Icahn has said the company is poorly runand should be split into three insurers, a proposal that Hancockrebuffed Tuesday when speaking in a public conference call.
|The CEO told analysts and investors that the company plans todismiss almost a quarter of the top 1,400 members of seniormanagement.
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|“These are leaders that have contributed hugely,” Hancock saidon the call. “We just simply need fewer cooks in the kitchen.”
|The town hall remarks were discouraging to a swath of workers,the people said. Jon Diat, a spokesman for the company, declined tocomment.
|AIG had about 65,000 employees as of Dec. 31, compared with116,000 six years earlier. The insurer has been selling assets foryears, first to repay a government bailout, and then to simplifythe company. AIG has also consolidated offices and movedjobs to lower-cost locations such as the Philippines, Malaysia andAmarillo, Texas.
|Hancock’s address to employees echoes a presentation made by hispredecessor, Robert Benmosche, in 2013. Benmosche warned some staffthat year against buying New York-area homes.
|--With assistance from Katherine Chiglinsky in New York andNoah Buhayar in Seattle.
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
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