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AIG to cut 1,500 jobs
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September 5, 2001: 5:32 p.m. ET
Global insurer to cut 1,500 jobs in next 12-to-18 months after $23B takeover
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NEW YORK (CNNfn) - American International Group Inc., which won a $23 billion takeover bid of American General Corp. earlier this year, revealed Wednesday that it plans to cut 1,500 jobs due to the merger.
The reductions will come from several AIG and AGC locations in the United States and will be spread over the next 12 to 18 months, New York-based AIG (AIG: down $2.51 to $73.99, Research, Estimates) said in a statement.
News of the job cuts follows the resignation of American General Chairman Robert Devlin Tuesday. AIG Chairman Maurice Greenberg will replace Devlin.
Including American General employees, AIG's total staff comes to about 85,000 people. The reductions will be achieved through combining AIG/AGC units as well as attrition, the insurer said.
AIG is one of the world's largest insurers and one the largest underwriters of commercial and industrial insurance in the United States.
In May, AIG trumped a bid from U.K. insurer Prudential PLC to buy Houston-based American General, one of the nation's largest diversified financial services organizations. 
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