(Bloomberg) — American International Group Inc., the largest commercial insurer in the U.S. and Canada, is shifting workers to locations including the Philippines and Texas to reduce costs.
"We're talking several thousand jobs migrating to these centers," Peter Hancock, chief executive officer of AIG's property and casualty business, said yesterday in an investor presentation in New York. "Initially that creates some labor-cost arbitrage, but over time, it gives rise to business process optimization and finally automation."
AIG is working to improve performance at the property and casualty business. In February, a person familiar with AIG's plans said the company expected to cut about 1,500 jobs, partly in an effort to reduce management layers. The New York-based insurer had 64,000 employees at the end of 2013.
Hancock didn't say from where the jobs will move. CEO Robert Benmosche has warned employees against buying homes in the New York area, people familiar with the matter said last year.
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