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MetLife in job cuts
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October 22, 2001: 5:09 p.m. ET
Insurer to take 4Q $356M charge, sees $210M in losses due to terrorist attack.
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NEW YORK (CNNmoney) - Insurer MetLife Inc. disclosed Monday it will cut more than 1,900 jobs, including 10 percent of its officers and directors, and will take a $356 million charge in the fourth quarter.
New York-based Metlife (MET: up $0.78 to $27.90, Research, Estimates) reduced its director-level employee staff by 253 with 158 of these staff members leaving during the third quarter. MetLife plans to slash nearly another 1,000 positions in individual business; about 640 will be non-sales and 340 will be operations and technology positions.
MetLife also will reduce by 200 its auto & home division. Over the next year, the insurer plans to cut another 450 positions in its 401(k) recordkeeping services.
The cuts are part of MetLife's attempt to streamline costs. "The initiatives we are announcing today are difficult but necessary steps to position us for enhanced profitability in the future," said MetLife CEO Robert Benmosche.
The actions will result in the company taking a third quarter charge of $12 million and $356 million in the fourth quarter. MetLife, which will report third quarter results Nov. 6, expects to report income of 29 cents to 31 cents per share.
Excluding insurance losses associated with Sept. 11, MetLife expects to post earnings of 56 cents to 58 cents a share.
Earnings tracker First Call expects third-quarter results of 19 cents a share and 59 cents in the fourth quarter.
MetLife also revised the impact of the Sept. 11 terrorist attack. The insurer expects operating earnings of about $210 million after tax, or 27 cents a share, the company said in a statement.
MetLife had previously said it would incur losses from the WTC destruction of about $250 million to $300 million. 
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