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Genworth Announces Expense Reduction Plan

Stocks in this article: GNW

RICHMOND, Va., June 6, 2013 /PRNewswire/ -- Genworth Financial, Inc. (NYSE: GNW) today announced an expense reduction plan as it continues to work on improving the operating performance of its businesses. This plan will eliminate approximately 400 positions, including 150 open positions that will not be filled, and will reduce related information technology and program spend. When fully implemented, the company expects to realize approximately $80 to $90 million in annual pre-tax expense savings primarily related to these actions. Overall expense levels may vary for a variety of reasons, including changes in sales volume or other strategic actions the company may take. A pre-tax non-operating charge of approximately $15 to $20 million will be recorded in the second quarter of 2013 reflecting severance, outplacement and other associated costs.  

"These are very difficult decisions to make but the changes are essential to our ongoing work to improve the performance of our businesses and deliver value to our shareholders," said Tom McInerney, President and CEO. "Our organization will remain sharply focused on our priorities as we make further progress on operating our businesses as efficiently and effectively as possible. We'll provide support to the employees impacted and ensure they are treated with the utmost respect. We do not believe these actions significantly change our previously disclosed views on performance in 2013, but anticipate them to have a more meaningful impact in future years."

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company dedicated to helping people secure their financial lives, families and futures.  Genworth companies have leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement -- including life insurance, long term care insurance, financial protection coverages, and independent advisor-based wealth management -- and mortgage insurance that helps consumers achieve home ownership while assisting lenders in managing their risk and capital.

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