American International Group has warned some staff against buying New York-area homes, and the company is seeking to use fewer offices in the city as part of a cost-cutting push, two people familiar with the plans said.
Chief Executive Officer Robert Benmosche, 68, is weighing whether to shift some jobs to lower-cost locations, and the insurer will consolidate New York financial-district operations into property it owns in the city, said one of the people, who declined to be identified because the plans are private.
“On a global basis, AIG constantly reviews how best to allocate jobs based on various labor markets and their respective value and cost structure,” said Jon Diat, an AIG spokesman. “AIG is in the process of consolidating its extensive lower Manhattan real-estate footprint to ensure greater and more efficient work and cost savings.”
Separately yesterday, AIG won a legal victory over where a mortgage fraud lawsuit it brought against Bank of America should be heard.
A Manhattan appeals court agreed with AIG that the case belongs in state court, not federal court, as Bank of America preferred.