Genworth Financial eliminating about 400 positions

Associated Press

RICHMOND, Va. (AP) -- Insurance company Genworth Financial Inc. is eliminating about 400 positions as part of a plan to improve the performance of its businesses.

In January Genworth announced a reorganization that it said would reduce financial risks at its mortgage insurance business and put that unit under a newly created parent company.

Genworth said Thursday that the jobs being eliminated include 150 open spots that won't be filled. It will also trim related information technology and program spending. The moves are expected to result in about $80 million to $90 million pretax in annual expense savings.

Genworth's total workforce includes approximately 5,840 employees. The Richmond, Va., company anticipates taking a second-quarter pretax charge of approximately $15 million to $20 million for severance, outplacement and other related costs.

Genworth, which was once part of General Electric, announced in March that it was selling its wealth management business for about $412.5 million to help pay back debt. It had approximately $4.77 billion in long-term debt and $3.8 billion in cash and cash equivalents as of March 31, according to a regulatory filing.

Shares of Genworth rose 11 cents to $10.46 in morning trading.