Northwestern Mutual Announces Layoffs: Hundreds of Job Cuts

MILWAUKEE -- Northwestern Mutual is laying off hundreds of workers over the next two years, according to an announcement made by the Milwaukee-area company on Thursday.

According to a report by the Milwaukee Business Journal, Northwestern Mutual will eliminate 100 jobs this year 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.

Here is an excerpt of the company's statement as delivered by spokesperson Betsy Hoylman:

"... While we will continue to focus on hiring people with the skills we need and developing our teams, some positions will be impacted and these decisions have not been easy. Our Chairman and CEO John Schlifske told employees today that approximately 100 positions will be eliminated this year and hundreds will be eliminated next year.”

The specific positions cuts were not released as of Thursday morning. Northwestern Mutual employs approximately 5,900 workers in the Milwaukee area. You can read the full text of the company's statement and more reporting on this announcement from the Milwaukee Business Journal here.

Earlier in September

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

Those were the words from Northwestern Mutual CEO John Schlifske on less than two weeks before Thursday's announcement 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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