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Genworth Financial notifies workers about job cuts

Genworth Financial to layoff 80 employees in Virginia
Posted at 4:07 PM, Jan 20, 2021
and last updated 2021-01-20 16:07:48-05

HENRICO COUNTY, Va. -- Virginia-based insurance giant Genworth Financial has begun notifying some of its workers that their jobs are being cut after a proposed merger with a China-based investment firm was delayed.

A spokeswoman for Genworth confirmed on Wednesday that the company is starting to notify employees of job reductions, the Richmond Times-Dispatch reported.

The company didn’t say how many workers would be eliminated, or when the cuts would occur.

Genworth has thousands of employees in Virginia, mainly in the Richmond and Lynchburg areas.

The proposed job cuts follow by two weeks word from company president and CEO Thomas McInerney to investors and analysts on a Jan. 5 conference call that the company would look to cut costs after the merger deal with China Oceanwide Holdings had been put on hold.

China Oceanwide agreed in October 2016 to acquire Genworth for $2.7 billion, or $5.43 per share.

The closing of the acquisition has since been delayed 17 times, mostly as Genworth sought approval for the deal from numerous state and federal government insurance regulators.

Genworth sells both long-term care insurance that covers the costs of nursing home or at-home care, and home mortgage insurance covering defaults on home loans.