(Bloomberg) -- American International Group Inc., theinsurer under pressure from activistinvestors, may eliminate about 125 positions in theU.K. as it scales back in certain countries and moves jobs tolower-cost locations, according to people familiar with theplan.

The company could reduce the region’s staff by as much as 5%,said the people, who asked not to be identified discussing a planthat hasn’t been disclosed publicly. Based on the headcount of2,500 there, that means 125 could be affected, according to one ofthe people. Employees were informed of the plan last month in anote from the chief executive officer of AIG’s U.K. operations,Anthony Baldwin, the people said.

Reducing expenses by $1.6 billion

AIG CEO Peter Hancock has resisted calls from activist investorCarl Icahn to split up the company, saying he favors a broaderbusiness mix that includes life and retirement insurance. AIG hasdisclosed a plan to cut at least 200 jobs at five locations inNew York City, including at its headquarters.

“To become a leaner, more profitable and focused insurer, AIGplans to reduce expenses by $1.6 billion through 2017,” Jon Diat,an spokesman for the firm, said March 22 in an e-mailed statement.The company declined to comment further on the U.K. reductions. “Aswe take action to meet our expense target, staff reductions willoccur.”

AIG shares have tumbled more than 13% this year, compared withan increase of less than 1% in the Standard & Poor’s 500Index.

Related: AIG slashes CEO incentive award 29% after missingprofit targets

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