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

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

Genworth said it has also made refinements to its strategic market focus aimed at concentrating on segments it views as the best fit with its strengths, profitability targets and risk appetite.

Regarding mortgage insurance, the firm said that increasing unemployment, declining home prices and lack of credit are impacting mortgage originations as well as homebuyers' abilities to maintain their mortgage obligations.

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

Genworth promised it would maintain a focus on insuring high-quality single mortgages supported by tightened underwriting standards and increased pricing.

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

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Genworth Financial Lays Off 1,000

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