Richmond, Va.-based insurer Genworth Financial said today it haslaid off 1,000 of its 7,300 employees and will cut or reduceexecutive bonuses.

The firm, which provides mortgage, retirement income, life andlong-term care, Medicare and supplement insurance products as wellas related financial and wellness advisory services revealed thestep in a letter to customers, distributors and partners.

Genworth said it has also made refinements to its strategicmarket focus aimed at concentrating on segments it views as thebest fit with its strengths, profitability targets and riskappetite.

Regarding mortgage insurance, the firm said that increasingunemployment, declining home prices and lack of credit areimpacting mortgage originations as well as homebuyers' abilities tomaintain their mortgage obligations.

The mortgage unit, it said, is shifting to a business model thatdelivers higher returns with a lower risk profile.

Genworth promised it would maintain a focus on insuringhigh-quality single mortgages supported by tightened underwritingstandards and increased pricing.

Layoffs and other actions it has taken, the insurer said, shouldhelp reduce pretax operating expenses by approximately $100 millionto $150 million on an annual basis.