(Bloomberg) -- AmericanInternational Group Inc., the insurer that’s been underpressure from activist investors, said it plans to cut 242 jobs atfive locations in New York City.

The reductions will take place through Sept. 30, and include itsWater Street headquarters, as well as Pine Street, Old Slip, 1 NewYork Plaza and Liberty Street offices, AIG said in a so-called WARNnotice dated March 21 and filed with the New York Department ofLabor.

“In order to become our clients’ most valued insurer, AIG plansto reduce expenses by $1.6 billion through 2017,” Jon Diat, aspokesman, said in an e-mailed statement Tuesday. “As we takeaction to meet our expense target, staff reductions willoccur.”

Chief Executive Officer Peter Hancock, facing demands from activist investor CarlIcahn to shrink the company and improve profitability,has been reducing costs by eliminating jobs and shifting thousandsof positions to less expensive locations outside of New York. Hetold investors in November that he planned to dismiss almost aquarter of the top 1,400 members of senior management, and toldstaff not to count on lifetime employment. He said about 2,000 jobsannually were being moved to low-cost centers.

Moving jobs has been a “very substantial shift in the way thecompany has provided services to create scale,” Hancock said in aNovember conference call. AIG has “improved controls and providesthe platform for future automation of what were very manualprocesses that were decentralized and had a lot of redundancy,” hesaid.

AIG shares have fallen 13% this year, compared with the 0.3%advance of the Standard & Poor’s 500 Index.

Related: AIG posts loss, eliminates jobs as Icahn calls forbreakup

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