UPDATE: AIG (AIG) Said to Weigh Consolidating New York Offices
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(Updated - April 19, 2013 2:16 PM EDT)
American International Group (NYSE: AIG) is said to have warned some employees against buying homes in the New York City-area as it looks to consolidate some of its offices in the region as a cost-cutting effort.
The information doesn't necessarily mean that AIG is cutting jobs; CEO Robert Benmosche is looking instead to potentially relocate some operations to lower-cost areas.
AIG's New York financial-district operations will be consolidated into a property that it owns in the city, Bloomberg said Friday afternoon.
A spokesperson for AIG said, "On a global basis, AIG constantly reviews how best to allocate jobs based on various labor markets and their respective value and cost structure...AIG is in the process of consolidating its extensive lower Manhattan real-estate footprint to ensure greater and more efficient work and cost savings."
Having sold some assets to repay what it received from the U.S. as bailout during the financial crisis a few years back, the firm simply needs less space.
Shares are up 1.5 percent on the session.
American International Group (NYSE: AIG) is said to have warned some employees against buying homes in the New York City-area as it looks to consolidate some of its offices in the region as a cost-cutting effort.
The information doesn't necessarily mean that AIG is cutting jobs; CEO Robert Benmosche is looking instead to potentially relocate some operations to lower-cost areas.
AIG's New York financial-district operations will be consolidated into a property that it owns in the city, Bloomberg said Friday afternoon.
A spokesperson for AIG said, "On a global basis, AIG constantly reviews how best to allocate jobs based on various labor markets and their respective value and cost structure...AIG is in the process of consolidating its extensive lower Manhattan real-estate footprint to ensure greater and more efficient work and cost savings."
Having sold some assets to repay what it received from the U.S. as bailout during the financial crisis a few years back, the firm simply needs less space.
Shares are up 1.5 percent on the session.
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