Boston-based world insurer Liberty Mutual has confirmed that it’s shedding about 850 employees, or 2% of its workforce, within the U.S.
The terminations will probably be felt in a number of departments this month and plenty of will grow to be efficient by the tip of the 12 months, in line with an organization spokesperson. Workers in Liberty’s Retail Markets and International Threat Options enterprise items, in addition to expertise and different company teams will probably be affected.
“We’re initiating a multi-year transformation to make sure our group is ready up for future success and to handle the rise of rising dangers,” the corporate stated in an announcement. “We’ll reimagine how we do enterprise with a give attention to effectivity and effectiveness; and can prioritize our efforts to give attention to how we are able to present probably the most worth for our clients, brokers, brokers and companions.”
These 850 Liberty Mutual layoffs are along with about 370 jobs lost within the U.S. as the results of a restructuring in August.
For the primary half of 2023, Liberty Mutual recorded a net loss of $650 million in comparison with a achieve of $156 million throughout the identical time in 2022 and a achieve of extra $1.6 billion for the primary half of in 2021.
Liberty Mutual is the newest insurer to announce workers reductions. As reported by Insurance coverage Journal earlier this month, GEICO announced it’s shedding 2,000 associates, or about 6% of the workforce.
“This may enable us to grow to be extra dynamic, agile, and streamline our processes whereas nonetheless serving our clients,” GEICO president and chief government officer Todd Combs stated in a letter to workers.
GEICO’s layoffs comply with comparable strikes by different insurers. American Household Insurance coverage final week confirmed staff reductions. Farmers Insurance coverage introduced in August that it will let go 11% of its workforce, about 2,400 employees.
The workers cuts at Farmers got here after it and different main insurers, together with State Farm and Allstate, stated they might cease writing new enterprise or renewals in Florida, California and different states, because the trade manages the affect from pure disasters, inflation and rising substitute and prices and different loss adjustment bills across the nation.
On-line insurance coverage company EverQuote said in July it will lay off almost 100 workers at its Evansville, Indiana workplace as a part of plans to scale back its non-marketing working bills by over 15%.
Firms within the insurtech space have additionally been downsizing. Department Insurance coverage, Corvus Insurance coverage and Pie Insurance coverage introduced layoffs earlier this 12 months. Final 12 months, Thimble, NEXT, Lemonade, Hippo and Root had been among the many insurtechs trimming their workforces.
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