The Principal Financial Group lowered the boom on 300 workers in central Iowa yesterday:
Principal Financial Group laid off 550 employees Tuesday, including 300 in its Des Moines headquarters, the company said.
Principal, one of the area’s largest employers, has approximately 16,400 employees worldwide and 8,000 in the Des Moines area. […]
The Des Moines-based insurance and financial services company said the cuts are due to continued deterioration of U.S. and global markets.
Principal reported a net income of $90.1 million for the third quarter, a 61 percent decrease from $232.3 million in the same period a year ago. Principal also told a state development agency last month that it is no longer interested in receiving tax incentives in exchange for creating 900 jobs in Iowa.
The last day for most affected employees will be Dec. 31, and all affected employees will receive severance and career assistance, the company said.
It’s great that people will receive severance pay and career assistance, but they will be entering a very tough job market. Other local employers, including Wells Fargo Home Mortgage, have already laid off workers this fall. Finding a job with pay and benefits comparable to what Principal offered won’t be easy.
This isn’t just an issue for central Iowa. As nyceve writes in her latest diary, rising unemployment is expected to greatly increase the number of Americans lacking coverage for basic health care. Add that to the list of problems with our costly and inefficient employer-based health insurance system.