Finance Layoffs: AIG and Westpac Banking

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Published May 8, 2009 at 10:06 AM

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Bad news, the unemployment rate increased 0.4 percentage point to 8.9%, the highest level since September 1983, as nonfarm payrolls fell 539,000 in April, according to the Labor Department. The good news, the decline is the smallest in six months. Since the recession started in December 2007, the economy has shed 5.7 million jobs. The turmoil in the financial services industry contributed to these figures, and there seems to be no end to the layoff announcements with the latest coming from American International Group Inc. (NYSE:AIG) and Westpac Banking Corp. (NYSE:WB).

Evansville, Ind.-based American General Finance, a subsidiary of AIG, plans to cut 500 jobs and close 150 offices throughout the country, according to the Evansville Courier & Press.

Australia's Westpac Banking asked 5,000 employees to take 10 to 15 days unpaid leave, saying layoffs would be a last resort. The bank laid off 170 people earlier this year, according to ABC local radio.
Student loan company Nelnet Inc. will layoff about 250 employees in order to close its local operations by the second quarter 2010, according to The Jacksonville Business Journal.

It's rough out there, but there are firms hiring. For instance, the Special Situations Group of National City Investment Banking recently reacquired a business from PNC Financial Services Group (NYSE:PNC). SSG Capital Advisors, which the firm is now known as, is hiring, according to the Pittsburgh Business Times.

For a roundup of all the announced layoffs to date, check out The Deal's Pink Slips on Wall Street Dealwatch or any of the links below. Also feel free to leave us any layoff or hiring rumors you are hearing. - Maria Woehr

(Follow me on twitter or send me tips: @newsgirlmw)

Also see:
Finance Layoffs: Capital One, PNC and J.P. Morgan
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Finance Layoffs: IndyMac and more
Finance Layoffs: Santander's Sovereign and more
Finance Layoffs: Sovereign, Lloyds and more
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Finance Layoffs: Deutsche Bank, BofA and more
Finance Layoffs: Amex, HSBC, Legg Mason and more
Finance Layoffs: HSBC, Nomura and more
Finance Layoffs: Wells Fargo cuts 150 i-bankers
Finance Layoffs: Lloyds, BofA, Capital One and more
Finance Layoffs: UBS, T. Rowe and Sovereign

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From: sarah,

About.com picked the 3 best job boards for job seekers. The top 3 -

www.linkedin.com (professional networking)
www.indeed.com (aggregated listings)
www.realmatch.com (matches you to jobs)

good luck to all.

Posted on: May 9, 2009 12:27 PM

From: Jon,

Sir/Madam,

This story was a while back, I know... but need to point out a correction. The 10-15 days unpaid leave you cited clearly refers to PwC, not Westpac.

From the transcript of ABC Local Radio (http://www.abc.net.au/pm/content/2008/s2562768.htm):

"The global financial crisis continues to bite, this time hitting accounting firms. PricewaterhouseCoopers, one of the 'big four' accounting firms, has asked staff to take two or three weeks leave to cut corporate costs.

The firm laid off 170 people earlier this year, but said more redundancies are not planned.

Instead, the chief executive emailed 5,000 staff this week asking them to take 10-15 days unpaid leave, and calling more layoffs a 'last resort'."

Posted on: October 14, 2009 12:48 AM

Finance Layoffs: AIG and Westpac Banking

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