Principal Lays Off 550

Discussion in 'Off-Topic' started by Jeremy, Dec 9, 2008.

  1. Jeremy

    Jeremy CF Founder
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    Feb 28, 2006
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    Per KCCI.....

    BREAKING NEWS: Principal Financial Cuts 550 Jobs - Des Moines News Story - KCCI Des Moines

    Des Moines-based Principal Financial Group Inc. said Tuesday that it is cutting 300 jobs at its headquarters and around 250 in 45 other locations.

    The insurance, banking, retirement and asset management company on Tuesday blamed the cuts on continued deterioration of U.S. and global markets.

    The cuts represents about 3.5 percent of Principal's workforce.
     
  2. mj4cy

    mj4cy Asst. Regional Manager
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    Mar 28, 2006
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    Ouch. I feel for those families that are affected.
     
  3. delt4cy

    delt4cy Well-Known Member

    May 11, 2006
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    It's been a tough day around here. Nerves are certainly on high end.
     
  4. iowast8fan

    iowast8fan Well-Known Member

    Aug 3, 2006
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    its never a good time for layoffs, but does it seem like they always come more frequently during holidays?
     
  5. cyrevkah

    cyrevkah Well-Known Member

    Apr 12, 2008
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    I hope they can find something (even if temporary) quickly.
     
  6. Wx4Cy

    Wx4Cy Well-Known Member

    May 22, 2007
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    I'll 2nd that...
     
  7. ISUFan22

    ISUFan22 Well-Known Member

    Apr 11, 2006
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    I feel for ya.

    What type of people were let go? IT? Operations?
     
  8. dmclone

    dmclone Well-Known Member

    Oct 20, 2006
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    A little of everything
     
  9. cycloneryan

    cycloneryan Well-Known Member

    May 21, 2006
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    I think it is safe to say things are pretty bad right now. My company had never had layoffs in it's history. We just had 50 laid off a couple weeks ago. Sad stuff.
     
  10. Klonz

    Klonz Member

    Nov 9, 2006
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    #10 Klonz, Dec 9, 2008
    Last edited: Dec 9, 2008
    I wonder if Principal considered selling one of its corporate jets in lieu of cutting jobs?

    They are asking for $ 2 billion in assistance - so perhaps the luxuries of the executives need to be cut as well... the auto companies are being pressured to make such cuts.

    I have a family member affected by this... any time is a tough time, but especially during th holidays.
     
  11. djkent01

    djkent01 Well-Known Member

    Feb 21, 2008
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    I CLEARLY don't mean for this to sound inappropriate. However, I've just expanded a CPA firm and am looking for a person that wants to become a CPA, but that would be willing to spend a year or two doing a lot of admin tasks in addition some accounting work. If anyone you know of is losing a job from anywhere, including PFG, I'd like to talk to them ASAP. I can't pay much and don't have a complete benefit package in place, but I can offer a future.

    But I really need someone that wants to be a CPA in the future.

    PM me if anybody knows someone that may have an interest.
     
    • Like Like x 1
  12. Bobber

    Bobber Well-Known Member

    Apr 12, 2006
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    How many does Principal employ in Des Moines?

    I'd heard they were for sale and if that happed who knows how many jobs would be lost?
     
  13. Clonefan32

    Clonefan32 Well-Known Member

    Nov 19, 2008
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    Just a question: With all of these job cuts going on what areas seem to be most effected? Also, what types of things do the big wigs look at when deciding to cut jobs...seniority? level on the pay scale? department? I am not currently employed, but as a college senior am either headed to grad school or the workforce, and just was curious what is to look out for.

    Luckily I am a political science major so I have planned on being unemployed anyways.
     
  14. ISUFan22

    ISUFan22 Well-Known Member

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    #14 ISUFan22, Dec 9, 2008
    Last edited: Dec 9, 2008
    How would this be inappropriate? You have a need, people lost their jobs that could fill that need and have a job.

    Seems completely appropriate to me.

    I'd recommend those laid off look at some of the consulting companies in town. They seem to do a good job finding work. I was applying for FT positions after my layoff and there simply were not many. Second I started talking to the consulting companies, I had a number of good opportunities.

    My current one - was contacted by the firm on a Monday and had the job locked up that same Thursday.

    It is a really crappy time to get laid off - but there generally are not any "good" times for such either.
     
  15. djkent01

    djkent01 Well-Known Member

    Feb 21, 2008
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    Thanks. I just didn't want to sound like a vulture preying on other people's misfortune.
     
  16. dmclone

    dmclone Well-Known Member

    Oct 20, 2006
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    Here is what I can tell you. If you work in a job that seems to good to be true, it probably is. I worked in mortgage from 2000-2005 and we got HUGE bonus and our sales people were making big incomes right out of college without even trying. Everyone around me knew it was going to end and I got out before the company got sold off.

    As far as lay-offs, in big companies a lot of times it’s as simple as being in the wrong place/wrong time. If you’re in an area that has strong growth than you’re probably safe. My advice is set yourself apart from the others by learning a lot of different things. No one is completely safe because you can always be replaced but if you’re only 1 of 8,000 people in the company that knows something than it’s hard to get rid of that position.
     
  17. dmclone

    dmclone Well-Known Member

    Oct 20, 2006
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    Anyone looking to buy Principal would probably be in a similar position where they don’t have a ton of extra capital. BTW-Principal is still making money just not as much as previous qtr’s.
     
  18. mplscyclone

    mplscyclone Well-Known Member

    Jul 8, 2008
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    I'm pretty in the know about details of this. I can't really say too much though.

    Here's what I will say:

    They laid people off now so they can book it by the end of the year. The company had been cutting perks between September and now to try to avoid this.

    Many of the people laid off were under performing (but not necessarily all)

    It is too bad, but when you look across the industry, many of PFG's peers have cut a higher percentage of their staff.

    Overall, it is a tough day and I know no one took this lightly.
     
  19. mplscyclone

    mplscyclone Well-Known Member

    Jul 8, 2008
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    Very true, also the company is worth much more than the market cap right now, so PFG won't want to sell anyways.
     
  20. Bobber

    Bobber Well-Known Member

    Apr 12, 2006
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    That is screaming buy, buy, buy!:notworthy:
     

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