Principal Drops Worker Benefits, Cuts Pay
Spokeswoman Susan Houser said the Des Moines,
Iowa-based financial services company was also cutting
pay for workers, management and its board of directors
from 2% to 10% depending on pay level, according to the
Associated Press.
The actions are effective immediately and will result in
savings throughout 2009, Houser said. Benefits will be
restored when conditions improve.
“Due to continued deteriorating conditions in the economy
and markets, the Principal announced internally several
cost-cutting measures to reduce expenses and better align
revenues and expenses,” Houser said in a statement.
“These actions are designed to help offset decreased
revenues caused by the markets’ unprecedented impact on
our asset-based businesses.”
The company reduced its work force by about 3% in
December, laying off 550 workers. That included 300 in
Des Moines, where the corporate headquarters are located.
Another 60 insurance division workers lost their jobs
earlier this month.