Thread regarding AIG (American Intl Group Inc.) layoffs

I was riffed and the count is approx 800

The RIFs are real and will continue for a while, till the clueless management are able to grow the bottom line, ie revenue. The company has no strategy to grow the bottom line, at least nothing that they can articulate to the employees. They continue to RIF employees who know the business and hire new senior managers from financial institution that know nothing about insurance. They are there for the ride to collect their fat paychecks, bonus and stock options.

Meanwhile the senior manager that know the business are jumping ship and taking their business to their new employers. Look at Berkshire Hathaway's property and casualty business and the top management is from AIG and are eating AIG's breakfast. AIG employees do not buy AIG's insurance products, which should explain why the company is in a downward spiral.

Some facts

2007 120000 employees - 10th largest company in the world. Mailroom CEO without a college education gets $60 million to go away

2008 120,000 employees - $180 billion US government loan to bail out banks

2016 59,000 employees - stock price $62 - Downward spiral continues, company continues to show revenues by selling of businesses. New CEO gets $40+ million to rescue company. Cyber is his biggest concerns and IT is way behind. The mantra for all AIG CEOs since 2008. Hire new Level 2 management team and their directs

Hired America's highest paid CIO for $7+ million per year. Brought in his cohorts from Kaiser Permanente and was let go after a couple of years.

Sold off all Eastern European and Latin America businesses.

2018 44,000 employees - stock price $55 - Plan to reduce expenses is working. RIFs are occurring every 3 months and revenues are going down. Need to RIF employees to reduce expenses.

2019 40,000 employees - stock price $38 - RIFs are continuing. Every 3 months RIFs will continue to reduce expenses. There is no rationale for selecting employees for RIFs. Every VP needs to give names to meet expense reduction quotas. Each VP tries to out do the other by offering up employees to "brown nose" their managers.

The employees are in a morass and can't get out of each others way. Managers and VPs lie on accomplishments to collect their annual bonus. The following year they kickoff the same initiatives that were "completed" previously, using a different initiative name with new funding.

There is much to write about a company where senior management only expect to stay around for a few years, take their money and run to another company with the AIG experience.

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Post ID: @Y6HSZwn

8 replies (most recent on top)

My advice is to start looking. If you are near retirement and can hang on then do so because you will get a severance. Don't forget that is the group they have been targeting.

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Post ID: @Y6HSZwn-1anc

If AIG truly pulled the plug on RIFs... then come out in a Townhall and state the RIFs has stopped... they have not and Will NOT make such statements... hence at most... it’s a delay action on more RIFs to come. These so called Townhalls by Sr. Management are such worthless meetings with staged questions... Where are the Real Q&A on most of the workers mind??.. When will the silent RIFs stop?? How come we allow all friends and family of Execs take spots in the company and not allow Promotions?? When can we have standard Raises??..What’s the Impacts on workers with the Midtown move?? (Which was not disclosed by management..but by the Daily News)... How come GOE never goes down even with all the RIFs??......

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Post ID: @Y6HSZwn-kma

Amazingly dense townhall in IT this week. We were told the RIFs will continue and said our expenses are still too high. I agree on one point, comp we pay senior managers is too high. Still a lot of paper pushers not problem solvers hanging around.

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Post ID: @Y6HSZwn-bov

AIG is absolutely not worried about what they read their employees saying about them they can pull the plug on the rifs they're worried about who's going to do the work but believe me this will be a temporary plug because this has been going on for years and you know what it doesn't matter now because I wouldn't trust them I wouldn't get comfortable it's going to be temporary theyre going to just kick the can down the road. get out look for something before you're too old so many people who already bailed and are working at other places have gotten two and three raises already

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Post ID: @Y6HSZwn-ukj

I think very recent decisions by the company have addressed what has been illustrated here. The downward path has to stop somewhere. This week was scheduled for a huge RIF. AIG pulled the plug on their plans. One reason was who will be left to get the job done. The RIF Dept. has gone on vacation and it may be a permanent one. AIG Execs read this forum and you can bet they are worried about what is said about the company's future by the very people they depend on.

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Post ID: @Y6HSZwn-loy

The problem with the company aside from the atrocious “Senior Leadership” is that we are too scared to price our products properly. Our premiums don’t get us into profitability. And each quarter we have to eat massive losses from dirt cheap policies’ PYD bc they cover everything under the sun.

Does anyone remember “The Year Of The Underwriter”??? It was supposed to bring hi-tech pricing models and get rid of the field/desk underwriting combo that our clients HATED. But alas, no significant change once again. Just more “exciting!” Hires on the ELT and rounds of RIFs bc after all, if we don’t reduce GOE we’ll never be profitable.

It’s a terrible cycle from a company in the tank. Morale is non-existent, no corporate culture, no raises and a “bonus” system where you have to sc-ape and claw to get 100% of the crumbs promised.

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Post ID: @Y6HSZwn-uzi

Well if it is fake and it was planted by the company that's a poor poor way to try to improve morale more like a sneaky way to just keep doing what you're doing I don't know who advises Senior Management but wrong all wrong

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Post ID: @Y6HSZwn-ihl

Spot on!!! The new Lev 2,3,4 that has been recently brought in will be gone in 1-2 yrs with a golden parachute.. and no achievements to show for there short stay. This has been the case for 10+ years now... and with all the recent management departures and re-appointments... we are just repeating history over and over again.

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Post ID: @Y6HSZwn-fev

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