Skandia To Reduce U.S. Staff By 13 Percent

Sweden’s Skandia Group announced staff reductions in its U.S. subsidiary, American Skandia, aimed at eliminating 150 positions, about 13 percent of its work force, following a serious downturn in U.S. sales, that has seen its income reduced by half in January and February.

The move is part of an overall effort to cut costs by $35 million annually, and also reflects the general weakness of the U.S. market for financial products. Skandia is the U.S. leader in variable annuities with a 10 percent market share last year.