GEICO lays off 6% of workforce, prioritizes return to workplace

Auto insurance coverage large GEICO will lay off 2,000 workers, or 6% of its workforce, and has issued a return to workplace mandate, the insurance coverage firm’s CEO Todd Combs mentioned in a letter to staff despatched this morning.

Employees affected by layoffs might be contacted immediately, Combs outlined in a company-wide e-mail that was shared with Insurance coverage Enterprise by GEICO.

“To raised place ourselves for long-term profitability and development, and after an intensive analysis throughout all strains of enterprise, we’re decreasing our workforce by roughly 2,000 associates, or 6% of our complete workforce,” Combs wrote to workers. “This can enable us to turn out to be extra dynamic, agile, and streamline our processes whereas nonetheless serving our clients.”

These not affected by cuts have been advised they are going to be anticipated to spice up their in-office days, with full implementation of this coverage anticipated to comply with from January 1, 2024.

“We imagine that being in the identical place can foster a way of neighborhood and connection, and that significant time collectively will enable us to construct relationships that create belief and strengthen our sense of belonging,” Combs mentioned within the letter. “In that vein, we are going to quickly be growing our collective presence within the workplace.

“Your leaders might be sharing your required variety of in-office days primarily based on buyer and enterprise wants.”

Many workers have been hybrid or absolutely distant in current months, Combs acknowledged.

GEICO layoffs – what can workers anticipate?

GEICO CEO Combs pledged that the enterprise will provide profession transition help to staff affected by layoffs, together with by profession teaching classes, resume replace help, on-demand interviewing and networking, and with options on social media presence enhancing.

Affected staff will retain entry to the insurer’s Workday platform, that means they may have the ability to apply for open jobs on the insurance coverage firm.

Current advantages will proceed to be offered throughout discover durations, Combs confirmed.

“This very tough resolution was not taken evenly,” Combs mentioned. “We acknowledge we’re saying goodbye to beloved colleagues and mates, and as a management staff we’re dedicated to supporting these affected within the days forward.”

“Very tough interval” in charge to adjustments, GEICO CEO says

The CEO highlighted earlier “vital adjustments” that had been made to the enterprise because it sought to handle a “very tough interval throughout the trade”.

Challenges raised by Combs included ranges of inflation not seen in many years, labor elements shortages and delays, growing medical prices, and “different elements” which have led to mixed ratio and loss prices rises “alongside your complete trade”.

“Our future requires our firm to adapt swiftly and evolve our enterprise mannequin when wanted to remain aggressive and win,” Combs mentioned.

5 key priorities for GEICO

In Combs’ letter, he set out 5 key priorities for the enterprise transferring forwards. These had been:

• Serving clients of their channel of alternative
• Changing into primary in auto insurance coverage and increasing its product providing whereas maintiaing worth and profitiabilty self-discipline
• Driving monetary rigour by “operational excellence and effectivity”
• Stabilizing and modernizing know-how and knowledge structure
• Reworking firm tradition

“We’ll present particulars on these shared priorities and the working rules that may assist us get there collectively within the coming weeks,” Combs mentioned.  “Relatedly, we should do a greater job of speaking and offering the why behind the selections we’re making to maneuver our firm ahead.

“This can be a precedence for our leaders, and you may anticipate to see a larger emphasis on affiliate communication within the months forward.”

Acquired one thing to say about GEICO insurance coverage layoffs? Have you ever been affected? Share a remark under or attain out to our reporting staff.