Northwestern Mutual to cut 'hundreds' of jobs
Northwestern Mutual Life Insurance Co. plans to eliminate about 100 jobs this year and "hundreds" more in 2017, the company's top executive told employees Thursday morning.
"As we invest in our strategic priorities to meet our clients’ current and future needs, we are also committed to maintaining our strong financial position during this period of unprecedented low interest rates," Betsy Hoylman, a spokeswoman for Northwestern Mutual, said in a statement. "To balance these two goals, we’ve been evaluating how we work to better serve our clients. While we will continue to focus on hiring people with the skills we need and developing our teams, some positions will be impacted and these decisions have not been easy."
John Schlifske, the chairman and chief executive of Northwestern Mutual, made the job news official during an employee town hall meeting.
The company said earlier this month that it expected to eliminate some jobs as it dealt with lingering low interest rates that have made it harder to increase profits. Low interest rates make it more difficult for insurers to grow earnings because insurance companies invest premiums from policy owners mostly in relatively safe investments tied to rates.
Schlifske says new Northwestern Mutual tower will attract talent
The Milwaukee-based insurer is one of the metro area's largest employers, with a workforce of about 5,900 at its downtown and Franklin campuses.
Information on the types of jobs that will be cut wasn't immediately available.
"We don’t have job descriptions. It’s not an across-the-board approach," Hoylman said. "Our decisions are based on our strategic needs for the future."
The company currently is constructing a $450 million, 32-story skyscraper near Milwaukee's lakefront. To some observers, the construction of a new building and an announcement about job cuts seem to conflict.
Of the jobs situation, Hoylman said, the company is "investing in certain areas and changing the way we work in others to reallocate resources" and better serve our clients
"Our Tower and Commons is an important part of our investment in the future because it provides the type of collaborative space we will need to attract talented employees and serve our clients," she said. "Our new building is part of our commitment to playing a role in this community for generations to come."
She also said Northwestern Mutual's long-term jobs commitment to the city, going back to 2013 when City of Milwaukee officials approved financial incentives for the company to expand downtown instead of at its Franklin campus, remains intact.
"We’re still committed to creating 1,900 new jobs by 2030 as well as maintaining the 1,100 jobs that were shifted when we razed our previous building on the site," Hoylman said.
In a meeting with community business leaders two weeks ago, Schlifske said the tower project will provide the kind of facility the company needs to be able to draw “knowledge workers” who can keep Northwestern Mutual at the top of its industry over time. The interior of the building will be especially geared toward the “collaborative” and around-the-clock work styles of millennials, featuring health facilities, dining and other amenities they seek.
He said the company is trying to manage expenses in the short run while planning for the future with the tower project.