Travelers Workforce Drops by 1,400 as Insurer’s Profit Slumps
Travelers Cos. (TRV), the insurer in the Dow Jones Industrial Average, cut about 1,400 jobs, or 4.4 percent of the workforce, in 2011 as the company had its least profitable year since 2004.
The insurer had about 30,600 employees as of Dec. 31, according to the company’s annual report today, the lowest in seven years, according to data compiled by Bloomberg. There were 32,000 workers at the end of 2010 at New York-based Travelers, which provides coverage to businesses, motorists and homeowners.
American International Group Inc. (AIG) and Hartford Financial Services Group Inc. (HIG) are among insurers that have cut jobs as claims from natural disasters and lower yields on bonds pressured returns. Net income at Travelers slipped to $1.43 billion last year from $3.22 billion in 2010.
“We continually evaluate our business requirements and the proper staffing levels needed to serve our customers and maintain our efficiency and competitive edge,” said Shane Boyd, a spokesman for the insurer. “The changes in staffing levels over time reflect these adjustments across our organization.” He had no immediate comment on which units or regions had the most job cuts.
Travelers, led by Chief Executive Officer Jay Fishman, merged in 2004 with St. Paul Cos.
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