Genworth layoffs will affect Richmond and Lynchburg workers

Posted at 9:22 PM, May 07, 2012
and last updated 2012-05-07 21:22:56-04

RICHMOND, Va. (WTVR) Genworth Financial has laid-off about 80 of its employees, with the cuts affecting both Richmond and Lynchburg workers.

These layoffs follow last week’s resignation of Genworth's chief executive officer, Michael D. Fraizer.

His resignation came on the heels of the company’s quarterly report that shows another decrease in revenue from this time last year.

Genworth reported a first-quarter profit of $47 million in 2012, compared to $59 million in 2011.

Revenue also fell to $2.4 billion in 2012 from $2.5 billion at this time last year.

Genworth employs 1,300 people locally and more than 6,000 worldwide. It is a leading

Fortune 500 insurance holding company and operates through three divisions, including Insurance and Wealth Management, Global Mortgage Insurance and the Corporate and Runoff Division.

Jamie Cox, a managing partner at the Harris Financial Group, said Genworth’s weaknesses continues to be caused by the lagging housing market and low interest rates.

Company spokesperson Tom Topinka said these layoffs are organizational in nature. About 40 people in Richmond will be laid off and about 30 in Lynchburg. “These individuals will receive assistance with their transition to other Genworth roles or external opportunities.”

“These changes are designed to drive cost efficiencies within U.S. Life Insurance, as well as move our technological capabilities deeper within the businesses and closer to the customers we serve,” said Topinka.

"In addition, Genworth continues to actively hire and fill open positions throughout the company,” he added.

There are six Fortune 500 companies headquartered in the metro Richmond area; Altria, Dominion, Genworth, Carmax, Owens and Minor, and Meadwestvaco.
All businesses on the list lost ground recently, except for Carmax which made a big move into the top three hundred.