Hartford Financial Cutting 500 Jobs

Wednesday November 5, 2008
Navivest

In a bid to cut costs, investment and insurance company Hartford Financial announced that it will cut 500 jobs this month. The company blamed diminished returns in its investment portfolio, as well as slowing revenues. The 500 positions represents about 2% of the company’s employees.

On Wednesday October 29th, Hartford Financial reported that it lost $2.6 billion, or $8.74 per share, in the third quarter of this year. This compared to a profit of $851 million, or $2.68 per share, in the third quarter 2007.

Operating losses, which does not include investment gains and losses, totaled $422 million, or $1.40 cents a share.

The company’s stock plunged 52% the next day when it opened for trading, closing at $9.62, from Wednesday’s $19.86. The shares hit an intra-day low of $8.23, but has since recouped almost everything it lost, closing at $17.09 yesterday.

Tags: Hartford Financial