Prudential Financial is eliminating 243 senior leadership positions as part of a cost-cutting initiative aimed at streamlining the company’s operations, according to published reports.
Prudential CEO Charles Lowrey, speaking on the company’s quarterly earnings call, did not specify the number of employees, saying only that the layoffs stem from a desire to create a leaner, faster and more agile company.
“We’re taking new steps to simplify our organizational structure by reducing management layers, complexity and costs while making investments in technology and data platform,” he said. “Our goal is to empower faster decision-making and bring our integrated business teams closer to our customers and clients.”
Chief Financial Officer Ken Tanji said the company has included an estimated restructuring charge of approximately $200 million that will be incurred in the fourth quarter.
The layoffs are part of the company’s broader plan to transform the company through cost savings and a shift away from market-sensitive businesses.
The company’s U.S. businesses reported adjusted operating income of $1.09 billion for the third quarter, compared with $615 million a year earlier.
The news on the number of job losses was first reported by Bloomberg.