AM I NEXT? NO LOVE AT PRINCIPAL FINANCIAL GROUP (09/15/21)

SEPTEMBER 15, 2021 — CONTINUING LAYOFFS IN DES MOINES, IOWA.

The company has announced the layoffs of 25 Des Moines employees associated with the discontinuance of the sale of the company’s fixed annuities and life insurance to individual customers. The separation is scheduled for October 15, 2021.

The decision was driven by activist investor Elliott Management Corp. called for an internal review of its lines of business. Like most Elliot deals, the company “expected to provide $3 billion to shareholders through the end of 2022 by buying back stock and increasing dividend payments.” Of course, the winner was Elliot Management and the employees were the losers.

JULY 7, 2021 — Original post…

Principal Financial Group is an American global financial investment management and insurance company headquartered in

Des Moines, Iowa-based Principal Financial Group, a financial investment management, and insurance company has announced substantial changes to its business operations which will lead to a personnel realignment and a reduction in force of up to 5% of the companywide employee base.

The company has announced that it will be discontinuing individual life insurance for the retail market and the sales of retail fixed annuities.

According to Dan Houston, chairman, president, and CEO of Principal, “This thorough and intensive review considered strategic fit, client needs, financial impact, and the risk profile of our business lines. The outcome will result in a more focused portfolio and stronger capital management strategy that we believe positions Principal for strengthened leadership in higher growth markets and greater capital efficiency, leading to higher expected shareholder return. I am confident that as we move forward, we’ll be positioned to win and grow in meaningful ways for our shareholders, customers, and employees, both today and into the future."

"Some people will be laid off, but company officials said plans have not been finalized yet. The company employs 18,000 people globally."

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? PERFORMANT RECOVERY

Livermore, California-based Performant Recovery, a debt recovery service for government agencies and commercial accounts, has announced that it will be laying off 91 employees, including 31 previously furloughed employees, located in Grants Pass, Oregon. The layoffs are scheduled to occurr between between April 25, 2021 and May 7, 2021.

The decision appears to be driven by the consequences of the COVID-19 pandemic and changes in the federal student loan processing requirements.

According to a company spokesperson, “Numerous changes brought about by the COVID-19 global pandemic, together with recent government decisions regarding federal student loan processing, have significantly impacted our recovery business, resulting in these employment changes. While-we are actively exploring strategic options that may provide continued work opportunities for some employees, we cannot guarantee that these opportunities will materialize.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT SIMPLE BANK

Portland, Oregon-based Simple, an online technology-based bank specializing in free FDIC-insured checking account with built-in budgeting tools, is shutting down. The shut-down will impact all of the bank's current headcount, estimated to be 220 employees.

According to a notice on Simple's website, "Simple will be closing and it's been an honor to serve you. Thanks to all the customers who have been part of our journey. Simple account servicing will transition to BBVA USA later this year. Customers can still use their accounts as usual for now."

The shut-down is a consequence of the sale of their parent organization Birmingham, Alabama BBVA who is selling its U.S. business to PNC Financial Services Group for $11.6 billion.

A BBVA spokesperson noted, “We’re focused on the things that make the most sense for the company’s future whether on a standalone basis or a potentially combined basis with PNC." BBVA is also shutting down two other financial technology services it owns, Azlo and Open Platform.

Portland-based Azlo is similar to Simple, offering free checking accounts, and will likewise layoff all of their employees.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?