Thrivent Financial Inc. on Tuesday unveiled several cost-cutting steps, including an early retirement offer that hundreds of employees accepted and the wind down of a personal finance literacy service that will result in the layoffs of about 60 people.
The Minneapolis-based investment and financial-services firm said it aimed to trim $40 million in operating expenses over the next two years with the moves.
Thrivent said it was making the changes to focus on initiatives that will support growth of its base of 2 million clients. The firm, which is owned by its clients, earlier this year said it earned $1.2 billion on revenue of $8.2 billion in 2018, growing strongly from the previous year.
Seeking to "reposition resources," Thrivent in March offered an early retirement package to employees who were near retirement age. About 430 accepted, representing about 10% of its overall workforce.
"The feedback we have received indicates that employees were pleased with what the program offered," Thrivent said in a statement.
In addition, Thrivent decided to shutter Brightpeak Financial, a financial literacy service aimed at young couples and delivered mainly through a website, classes in churches and via a podcast. Thrivent said it will incorporate many of Brightpeak's online tools into its main website and other digital offerings.
It started Brightpeak in 2012 with a greater emphasis on face-to-face marketing to reach millennials and Gen Xers. By 2015, it retooled the service to with a stronger online component. Its most recent podcast was in December, however, and its website mainly offered quiz-like assessments to get young couples talking about their finances and goals.
"We concluded we can effectively reach this market through our existing platforms," Thrivent said in its statement.
It notified the Minnesota Department of Employment and Economic Development that it would eliminate the 60 jobs by early July. The firm said it will provide severance packages and outplacement services to Brightpeak workers.
Thrivent is a fraternal benefit society that originally provided insurance to Lutheran ministers. It now offers an array of financial products and services to people from a variety of Christian churches and had $134 billion in assets under management at the end of 2018.