Northwestern Mutual CEO Talks Publicly for the First Time About Impending Job Cuts

MILWAUKEE -- "It's going to be a few more weeks."

Those were the words from Northwestern Mutual CEO John Schlifske on Monday as he spoke publicly for the first time about the impending layoff situation at Northwestern Mutual.

Schlifske made the bulk of his remarks during a Greater Milwaukee Committee luncheon at the University Club in Downtown Milwaukee, but spoke also with the Milwaukee Business Journal on the matter.

“The specifics as it relates to what positions — we haven’t finalized yet,” Schlifske told the Milwaukee Business Journal on Monday. “I promised employees they’d hear it from me before they read it in the newspaper. So you’re just going to have to bear with us for a few more weeks — or whatever it’s going to be — till we have that finalized.”

Read the Business Journal's full report here.

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 Thursday night. The extent of the planned layoffs is not known.

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 yesterday night.

Record Revenue

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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