Summary
Ameriprise Financial, Inc. (AMP) announced on January 20, 2009, that it will record a pre-tax restructuring charge of approximately $60 million in its fourth quarter 2008 results. This charge is associated with accelerated re-engineering efforts aimed at improving operational efficiency and reducing costs. The company anticipates realizing significant annual run-rate expense savings exceeding $130 million, with over $80 million expected to be achieved in 2009. These savings are primarily projected to come from selective employee headcount reductions. Ameriprise emphasized its commitment to maintaining a high level of service for its clients and advisors, with client service operations largely unaffected by these restructuring measures.
Key Highlights
- 1Ameriprise Financial to record a pre-tax restructuring charge of approximately $60 million for Q4 2008.
- 2Anticipated annual run-rate expense savings of over $130 million from re-engineering efforts.
- 3Expected expense savings of over $80 million in the fiscal year 2009.
- 4Savings will be achieved primarily through selective reductions in employee headcount.
- 5Commitment to maintaining high levels of service for clients and advisors.
- 6Client service operations are expected to be largely unaffected by the restructuring.
- 7The filing includes standard forward-looking statement disclaimers regarding risks and uncertainties.