AMP has slashed another 2000 jobs, mainly from its European operations, as its shares continue to dive and the company looks sure to deliver further significant losses for the year.

AMP said it would have to write down a $320 million restructuring charge, which will take its total write-downs to $1.5 billion. CEO Andrew Mohl said the write-down will make it “difficult” for the company to show a profit this year. Analysts are being less circumspect, predicting AMP will report a loss of around $400 million or more.

Further losses for the insurance and funds management group would shatter any hopes for it to return to profit next year.

Mr Mohl said it is difficult to cut more jobs, but he has no choice. “These have been difficult decisions to make because of the impact on our people. However, given tough equity markets and the well-publicised issues of the UK life market, we have no choice.”

The announcement of job cuts came on the same day as Chairman Stan Wallis released details of Mr Mohl’s remuneration. Under the package, Mr Mohl will be able to triple his $1.5 million salary in the first year of the job, but only if he can successfully turn around the group’s profitability to match the rest of the market.

The package also includes a “short-term incentive payment” aimed at encouraging Mr Mohl to remain with AMP for at least the next three years. But specific details about this payment weren’t revealed. The statement said the award of short-term incentive would be “at the discretion of the AMP board, having regard to quantitative and qualitative performance objectives determined by the board of directors.”