Metlife Inc (NYSE:MET), the largest life insurance company in the United States is moving 2,600 workers to North Carolina from its four offices in the Northeast and California, amid cost cutting measures implemented by its CEO Steven Kandarian, according to report from Bloomberg.
During a telephone interview, John Calagna, spokesman for Metlife Inc (NYSE:MET) said that the insurance giant’s administrators for its retail business in the country will be relocated to Charlotte and some of its technology and operations employees will be based in Cary.
A separate statement from Governor Pat Mc Crory indicated that MetLife will create 2,600 management, information technology and other position in North Carolina by 2015. The state is offering tax and other incentives.
Metlife Inc (NYSE:MET) decided to move its employees to North Carolina after the state approved a tax break of around $89 million over 12 years if the insurance giant agrees to invest $125 million in two new sites and retains the jobs.
Kardarian aims to reduce the Metlife Inc (NYSE:MET)'s costs by $600. Low interest rates negatively affected its profits. Last month, Metlife Inc posted $855 million losses on derivatives during the fourth quarter.
The insurance giant is moving the jobs from its offices in Lowell and Boston Massachusetts; Ney Jersey, Bloomfield Connecticut, Johnstown, Pennsylvania, Warwick, Rhode Island; and Aliso Viejo and Irvine California.
According to Calagna, “We want to be able to have our teams who are working together actually be together and collaborate, and we’re looking to have fewer real-estate locations.” He explained that the move will create a central location for its employees responsible in the operations of its retail business in the United States. The company will also create a technology hub.
Calagna said Metlife Inc (NYSE:MET)'s auto and home operations are currently based in North Carolina. He doesn't know the exact number of employees who will transfer to the state or how many new workers will be hired by the company. He said the company currently employs 23,000 administrative workers.
Earlier this week, the company confirmed its $0.25 per share preferred stock dividends for the first quarter of 2013.
The stock price of Metlife Inc (NYSE:MET) is up by nearly 2 percent to $37.11 per share as of this writing.