AEGON plans to reduce US workforce by 5% - KWWL - Eastern Iowa Breaking News, Weather, Closings

AEGON plans to reduce US workforce by 5%

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CEDAR RAPIDS (KWWL) -- AEGON says it plans to reduce its workforce in the United States  by about 5 percent during the next two years. That amounts to about 400 to 500 employees. 

Company officials say they will discontinue new sales on benefit plans and certain life insurance business plans in the U.S. Most of those current operation facilities are located in Dallas, Texas. AEGON also plans to consolidate it's operations in Louisville, Kentucky with other existing U.S. locations as a cost-efficiency measure. The company plans on consolidating and outsourcing certain office activities at the Cedar Rapids location. These organizational changes are expected to result in an annual cost savings of about $70 million.

"Key to AEGON's long-term strategy is the need to focus on our core activities and identify ways to better leverage resources and capture efficiencies, as evidenced by our decision to consolidate operations," said Mark Mullin, a member of AEGON's Management Board and CEO of AEGON Americas. "The decision to exit the executive non-qualified benefit space and related BOLI/COLI market is consistent with this focus. We have concluded that over the long-term there is only a limited strategic fit between this business and AEGON's core business. We remain committed to providing existing customers the same level of quality service they have come to expect."

 

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