American International Group reported quarterly earnings and revenue that easily beat analysts' expectations on Thursday and announced it will cut its workforce by 3 percent because of a charge taken in the fourth quarter.
In a company memo, AIG CEO Robert Benmosche said, "With results today, we announced a $265 million severance charge taken at the end of 2013, which we expect will reduce AIG's global workforce by approximately 3 percent."
Shares rose as much as 2 percent in after-hours trading.
The company posted fiscal fourth-quarter earnings excluding items of $1.15 per share, up from 20 cents a share in the year-earlier period.
Revenue increased to $8.62 billion from $8.61 billion a year ago.