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

Auto insurance coverage big 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 stated in a letter to staff despatched this morning.

Workers affected by layoffs might be contacted right now, Combs outlined in a company-wide electronic mail that was shared with Insurance coverage Enterprise by GEICO.

“To higher place ourselves for long-term profitability and progress, and after a radical analysis throughout all traces of enterprise, we’re lowering our workforce by roughly 2,000 associates, or 6% of our whole workforce,” Combs wrote to workers. “This can enable us to develop into extra dynamic, agile, and streamline our processes whereas nonetheless serving our prospects.”

These not affected by cuts have been instructed 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 group and connection, and that significant time collectively will enable us to construct relationships that create belief and strengthen our sense of belonging,” Combs stated within the letter. “In that vein, we’ll 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 latest months, Combs acknowledged.

GEICO layoffs – what can workers anticipate?

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

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

Present advantages will proceed to be supplied throughout discover intervals, Combs confirmed.

“This very troublesome determination was not taken frivolously,” Combs stated. “We acknowledge we’re saying goodbye to beloved colleagues and mates, and as a management crew we’re dedicated to supporting these affected within the days forward.”

“Very troublesome interval” guilty 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 troublesome interval throughout the business”.

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 the complete business”.

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

5 key priorities for GEICO

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

• Serving prospects of their channel of selection
• Changing into primary in auto insurance coverage and increasing its product providing whereas maintiaing worth and profitiabilty self-discipline
• Driving monetary rigour via “operational excellence and effectivity”
• Stabilizing and modernizing know-how and information structure
• Remodeling 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 stated.  “Relatedly, we should do a greater job of speaking and offering the why behind the selections we’re making to maneuver our firm ahead.

“It is a precedence for our leaders, and you’ll anticipate to see a better emphasis on affiliate communication within the months forward.”

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