American International Group posted quarterly earnings that fell well short of analysts' estimates Monday, hit by rocky markets and restructuring costs.
The insurance giant reported adjusted third-quarter earnings of 52 cents per share on $12.82 billion in sales. Earnings fell about 60 percent from $1.19 per share in the previous year.
Analysts expected AIG to post earnings of $1.03 per share on $14.22 billion in revenue, according to a consensus estimate from Thomson Reuters. Profit and sales numbers both missed the Street's most pessimistic estimate.
Results suffered from $274 million in pre-tax restructuring costs in the quarter. AIG said it would spend $500 million on reorganization through 2017, hoping to eventually save $400 million to $500 million per year.
"This quarter's results, while falling short of expectations due to market volatility, show signs that we are making progress to transform AIG for long-term competitiveness," said AIG CEO Peter Hancock in a statement.
AIG will also cut 300 to 400 senior management jobs, about 20 percent of 2,000 senior positions, as part of the restructuring, a source familiar with the situation told CNBC. The changes were in the works before activist investor Carl Icahn announced his "large stake" in AIG last week, the source said.
Shares fell more than 1 percent in extended trading. (Click here to follow the stock.)