Aon to cut 2,700 jobs, profit soars 92 pct

[UpInArms]

Source: Reuters

NEW YORK (Reuters) - Aon Corp (AOC.N: Quote, Profile, Research), one of the world's largest insurance brokerages, said on Wednesday it will eliminate 2,700 jobs, or about 6.3 percent of its work force, in a bid to save $240 million a year by 2010.

The cuts primarily affect workers who do not deal directly with clients, Aon said. About 1,100 jobs will be outsourced or sent outside the United States, European operations will be simplified and some finance, human resources and information technology operations will be merged, Aon said.

Chicago-based Aon said it employs 43,000 people in more than 120 countries. It expects a $360 million pre-tax charge for the restructuring, Aon's second in two years.

Separately, Aon said third-quarter profit rose 92 percent to $204 million, or 64 cents per share, from $106 million, or 32 cents, a year earlier, helped by growth in brokerage and insurance underwriting premiums and higher consulting fees.

<snip>

"People wonder whether they're cutting too close to the bone, but Aon's margins are not top shelf," said Chuck Hamilton, senior equity analyst at FTN Midwest Research in Nashville, Tennessee. "The critical thing for investors to watch is net commissions and fees, because if you cut too much, production staff and salespeople flee to rivals."

Read more: http://www.reuters.com/article/bondsNews/idUSN3135202220071031

[thunder35]

1. screw the workers

[LakeSamish706]

2. Another good corporate neighbour.... Only 92 % Profit huh? n/t

[LakeSamish706]

3. Oh and by the way, you can blame good old Georgie boy for this shit! n/t

[progressivebydesign]

4. They also do home warranty insurance..

and they are the suckiest, most dysfunctional corporation, ever. Makes me ill how they cut the jobs for the "bottom line", which means.. PROFITS for the richest investors and the CEO. Screw the workers, and make the remaining workers work that much fucking harder. As IF the work suddenly decreases because they laid people off.