Northwestern Mutual Poised to Lay off Hundreds, Posts Record Revenue in 2016

MILWAUKEE, WI -- Milwaukee-based insurance giant Northwestern Mutual is poised to make "hundreds" of job cuts in 2017, and has just posted "record revenue" figures from 2016, according to a report.

Northwestern Mutual reportedly will inform employees before the end of the fiscal first quarter on March 31, CEO John Schlifske told employees Thursday during a town hall session.

According to a report by the Milwaukee Business Journal, Northwestern Mutual eliminated approximately 100 jobs in 2016 and "hundreds more next year" under the company's ongoing "expense initiative." The job cuts were announced at a company meeting by chairman and CEO John Schlifske.

Record Revenue in 2016

According to Milwaukee Business Journal figures posted Feb. 16, here are the marked increases that contributed to Northwestern Mutual's record year. Additional data can be found ontheir original story here.

Total Surplus and Asset Valuation
2016: $ 23.7 billion
2015: $ 23.47 billion

Total Revenue
2016: $ 28.2 Billion
2015: $ 27.9 billion

Layoff Announcement Leaked to the Public

As the company embarks on building a $450 million corporate headquarters overlooking Lake Michigan, Northwestern Mutual is poised to make job cuts - citing rough waters caused by low interest rates.
Job cuts are coming to Northwestern Mutual, Milwaukee's 9th-largest employer, after the company made the announcement to employees in September 2016.

According to a report by WTMJ, in a statement, communications director Betsy Hoylman said unprecedented low interest rates are putting pressure on companies across the industry. Hoylman went on to say: "while NM continues to grow and hire accordingly, there will be an impact to some positions over time," WTMJ has reported.

The Journal Sentinel also confirmed that CEO John Schlifske said "we will continue to hire ... (but) there will be shifts in our workforce and some (jobs will be cut)" in a video message sent to employees.

In the Business Journal's Feb. 16 report, it stated Northwestern Mutual is "reconfiguring its workforce for a more digital-based relationship with customers and sales representatives."

Record Revenue in 2015 Too

It seemed like only yesterday that Northwestern Mutual reported record revenue.

According to a report published by the Milwaukee Business Times in February 2016, Northwestern Mutual Life Insurance Co. reported record annual revenue in 2015, driven by additional premiums paid and assets under management.

The company’s 2015 revenue was $27.9 billion, up from $26.7 billion in 2014.

Northwestern Mutual’s premium revenue from insurance and annuity products was $17.8 million, up five percent from 2014. Its operating gain before dividends and taxes was $6.4 billion.

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