AIG posts 4Q profit; cutting about 1,900 jobs

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Associated Press

Posted on February 13, 2014 at 11:02 PM

Updated Thursday, Feb 13 at 11:02 PM

NEW YORK (AP) — American International Group Inc. moved to a profit for its fourth quarter and increased its dividend, while saying that it is cutting 3 percent of its workforce to better focus its business.

AIG took a $265 million severance charge during the quarter related to the reductions, which will primarily be in its property casualty business. The company would not say how many jobs will be cut or where they are located. Based on AIG's global workforce of 63,000, the jobs eliminated work out to about 1,900.

The New York company got one of the biggest bailouts of the financial crisis but subsequently repaid the money and underwent a massive restructuring. Bemosche said Thursday that the cuts are part of the company's ongoing transformation.

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