The $500m initial costs include around $300m of redundancy pay

Peter Hancock AIG

AIG will cut 23% of its top 1400 senior staff in a bid to streamline its business.

In its Q3 earnings report the insurer said this would also improve its financial performance and increase returns to shareholders.

The firm said in its report that its pre-tax restructuring plans would cost around $500m but would then save around that amount every year.

The $500m initial costs include around $300m of redundancy pay.

AIG will give further updates before its Q4 financial report but said it expected further staff cuts next year.

AIG chief executive Peter Hancock said:This quarter’s restructuring actions mark the latest significant, visible steps in our transformation toward becoming more efficient, less complex, and able to respond to our clients’ needs with greater agility.