Prudential announces more layoffs as insurer continues to restructure

Prudential Financial is undergoing another round of layoffs as the company continues to evolve in Year Two under CEO Andrew Sullivan.

According to a filing with the New Jersey Department of Labor and Workforce Development, Prudential is laying off 53 employees on July 17. That follows previous layoff notices in March (54 employees), November (63), September (63) and July 2025 (57).

Sullivan officially succeeded Charles F. Lowrey on March 31, 2025.

A spokesperson for Prudential pointed out that the Newark, N.J.-based insurer is a worldwide company with 36,000 employees.

“Prudential is strengthening our business to deliver long-term growth by investing in the capabilities where we’re most competitive,” reads a statement from Prudential. “That means continually making targeted adjustments including, at times, reorganizing our workforce to align with the company’s strategy. These decisions are never easy, and we’re committed to providing impacted employees with support, care and respect.”

Japan problems

Prudential executives are dealing with an earnings drag due to problems in its Japan affiliate. Prudential of Japan is currently navigating severe compliance issues involving employee misconduct and inappropriate investment solicitations, resulting in a prolonged halt on new sales.

Prudential initiated a voluntary 90-day suspension of new POJ sales in February 2026. The sales pause was extended for an additional 180 days after it was determined the Japanese subsidiary was not ready to resume operations, extending the suspension through late 2026.

The total revenue loss and remediation cost associated with the Japanese market disruptions is estimated at approximately $1 billion.

Overhauling the team

Prudential overhauled its leadership team, restructured operations, and shed noncore assets to fuel growth in retirement and asset management, explained Sullivan and Yanela Frias, executive vice president and chief financial officer, during the company's recent Q1 2026 earnings call.

The company had higher operating expenses, Frias said, but is investing in service and technology to offer an “enhanced customer experience.” Prudential expects to see expense savings show up in 2027, she added during the May call.

“These are investments in things like modernizing and driving efficiencies in onboarding and claims management and group, and investments in service delivery throughout all our U.S. businesses,” Frias said. “These do lead to efficiencies.”

Prudential entered 2026 with a realignment of its senior business leadership structure. As a result, leaders responsible for the company’s U.S. businesses, Emerging Markets, the Japan Group and Prudential’s asset management business, PGIM, now report directly to Sullivan.

Phil Waldeck was appointed executive vice president, head of Prudential’s U.S. Businesses. In a corresponding move, Caroline Feeney, global head of Retirement and Insurance, departed Prudential after a 33-year career with the insurer.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.