New York Life Insurance Taiwan Corp (國際紐約人壽), which is to integrate with Taishin Financial Holding Co (台新金控), yesterday said it will cut in-office staff by more than 30 percent in line with restructuring to cope with a drop in business.
The local branch of the New York-based insurance firm plans to dismiss 120 staffers out of 350, as weaker-than-expected profitability and a drop in business over the past few years warrant the downsizing, the company said in a statement.
The move came as Taishin Financial indicated on Tuesday that it will file formal acquisition applications later this month, after inking a deal in August to buy the loss-making branch for NT$100 million (US$3.41 million).
New York Life Taiwan posted NT$386 million in losses as of June 30, pushing cumulative losses to NT$4.49 billion, company data showed. Total assets amount to NT$88.32 billion with the company’s net worth equaling NT$4.26 billion.
“The company arrived at a conclusion that a staff of 560 — including both in-office and sales workers will suffice,” a communications official said by telephone.
Those affected will be given favorable compensation, the official said without elaborating.
The company hopes to carry out the adjustment this week, the official said, declining to say if there had been any protests.
New York Life Taiwan has already briefed the Financial Supervisory Commission (FSC) on the restructuring plans, which will not affect the rights and benefits of the company’s 200,000 policyholders nor affect the quality of the company’s services, the official added.
FSC Chairman Chen Yuh-chang (陳裕璋) told the legislature’s Finance Committee yesterday that personnel adjustment is commonplace for companies involved in mergers and acquisitions.
“The commission will ensure that the companies involved protect the rights and benefits of workers,” he said.
Chen expected the dismissed workers will soon find new jobs as there is a shortage of manpower in the insurance sector.