Principal Financial to Cut 550 Jobs at Des Moines Headquarters

Associated Press
December 11, 2008

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

The insurance, banking, retirement and asset management company on Dec. 9 blamed the cuts on continued deterioration of U.S. and global markets.

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

The company released a statement saying most affected employees will leave Dec 31.

All affected employees will receive severance and career assistance.

Spokeswoman Mary O'Keefe says market conditions have worsened since September and that despite cutting expenses the company needed to eliminate some jobs.

Shares were trading up 5.6 percent, or $1 higher, at $18.84.

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