In a move aimed at simplifying its organizational structure and driving sustainable growth, Newark-based Prudential Financial Inc (NYSE:PRU). has announced plans to eliminate 243 jobs, primarily among senior vice presidents and vice presidents. The decision, part of a comprehensive strategy to reduce costs and enhance customer service capabilities, also involves reducing management layers by one-third.
CEO Charlie Lowrey hinted at more changes in lower-level positions, indicating that the restructuring may extend beyond the executive level. The state of New Jersey, where Prudential (LON:PRU) is headquartered, has been notified about these impending job cuts.
As part of its transformation strategy, Prudential is shifting its focus away from market-sensitive businesses. This strategic shift was underscored by the company's recent divestment of its variable annuities block.
Despite reporting a Q3 net loss of $2.49 billion before adjustments due to higher rates, Prudential managed to post a profit of $3.44 per share, surpassing analyst expectations. However, the company's revenue for the quarter fell short of estimates, with $10.1 billion reported against an expected $13 billion.
The company's investment management division, PGIM, reported a drop in adjusted operating income to $211 million due to lower agency and seed, and co-investment income. Despite this downturn, both the international and US business segments saw income increases driven by net investment spread results. The US segment alone reported an income of almost $1.1 billion for the quarter.
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