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

Auto insurance coverage large GEICO will lay off 2,000 employees, 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 workers despatched this morning.

Employees affected by layoffs will likely be contacted right this moment, Combs outlined in a company-wide e mail that was shared with Insurance coverage Enterprise by GEICO.

“To higher place ourselves for long-term profitability and development, and after an intensive analysis throughout all traces of enterprise, we’re lowering our workforce by roughly 2,000 associates, or 6% of our complete workforce,” Combs wrote to employees. “It will enable us to turn into extra dynamic, agile, and streamline our processes whereas nonetheless serving our prospects.”

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 group 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 will likely be sharing your required variety of in-office days based mostly on buyer and enterprise wants.”

Many employees have been hybrid or totally distant in latest months, Combs acknowledged.

GEICO layoffs – what can employees count on?

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

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

Current advantages will proceed to be supplied 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 pals, and as a management group we’re dedicated to supporting these affected within the days forward.”

“Very tough interval” responsible to adjustments, GEICO CEO says

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

Challenges raised by Combs included ranges of inflation not seen in a long time, labor elements shortages and delays, growing medical prices, and “different components” 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 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 by means of “operational excellence and effectivity”
• Stabilizing and modernizing know-how and information structure
• Remodeling firm tradition

“We are going to 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 count on to see a higher emphasis on affiliate communication within the months forward.”

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