Armonk, N.Y.-based bond insurer MBIA said it will eliminate 48 positions in its insurance operations while hiring up to 20 others for other strategic roles.
MBIA said many of the employees will be redeployed to different jobs including its asset management business.
The company said it is making the move as it realigns and refines “its business and risk strategies, which will include a more focused and rigorous credit discipline in its structured finance business going forward.”
“As we move toward rebuilding an unquestioned balance sheet, restoring credibility with investors and customers, and transforming the firm's legal, capital and operational structure for the long-term, a difficult but necessary part of this transformation is workforce realignment,” said Jay Brown, MBIA chairman and chief executive officer, in a statement.
MBIA said it is beginning immediate recruitment for 15-20 new hires for strategic roles, in addition to filling another 10 open positions.
The company's financial strength has been questioned by rating agencies because of its involvement with the subprime mortgage market. MBIA reported $2.3 billion in net losses in the fourth quarter of 2007. The company was forced to raise over $2 billion to keep its “triple-A” rating.
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