Genworth Financial announces 130 jobs eliminated

Posted by Phil Riggan – email

RICHMOND, VA (WWBT) - Genworth Financial announced it is discontinuing the sale of some of its annuity products, resulting in the elimination of 130 employees at the company's Richmond office.

Here are portions of a press release from Genworth Financial:

Genworth is discontinuing the sale of retail variable and group annuities.  This change is part of the company's ongoing refinement of its business strategies.  As Genworth looks to the future we are making choices about where to make investments for growth and profitability and, where to allocate capital and resources.  We considered many factors in making these decisions.

The decision to discontinue new sales in any line of business is not one we make without careful consideration, particularly when it impacts people.  As a result of discontinuing this line of business, about 130 Richmond area associates were impacted and their jobs eliminated.

We have more than 90 open positions in Richmond (and a total of approximately 1,300 associates in Richmond) and are encouraging impacted employees to apply for those open jobs. We are committed to supporting impacted employees through the transition with comprehensive benefits that include outplacement services and compensation based on years of service.

As part of ongoing refinement of its business strategies, Genworth Financial, Inc. (NYSE: GNW) today announced key changes to annuity products in its Retirement and Protection segment. It is discontinuing new sales of retail variable annuities and group variable annuities. Genworth continues to provide fixed annuities as well as other leading offerings, including life insurance, long term care insurance and wealth management.

In addition, Genworth is suspending sales of one type of linked benefit offering – which combines annuities and long term care insurance – until that market develops further. The company continues to offer linked benefit products that combine life and long term care insurance.

Current holders of Genworth annuity contracts will not be affected.

Genworth expects to record a pre−tax charge of approximately $12 million in the first quarter of 2011 for severance, outplacement support to assist affected employees during the transition, and other costs associated with this action.

"With this decision, we have taken an additional step in advancing our specialist strategy to concentrate on the markets, customers and products where we have distinct leadership positions and strengths," said Michael D. Fraizer, chairman and chief executive officer. "Looking ahead, Genworth continues to help people meet their financial security needs by focusing on key protection, wealth accumulation and mortgage insurance offerings across its businesses."