Liberty Mutual slashes round 850 jobs as a part of ‘transformation initiative’

Liberty Mutual is about to chop round 850 jobs, or about 2% of its US workforce this month, making it the newest insurer to announce layoffs in current weeks.

In a press release issued to Insurance coverage Enterprise, a Liberty Mutual spokesperson confirmed that the transfer was made “as a part of an organization transformation initiative.”

“We have now made the troublesome choice to eradicate roughly 850 positions, practically all within the US, throughout a number of features this month, a lot of that are efficient by the top of the yr,” the spokesperson stated.

“Impacted staff will likely be eligible for severance and outplacement help and are inspired to use for different positions throughout the group.”

Staff in Liberty Mutual’s US retail markets and world threat options enterprise models, in addition to expertise and different company teams, will likely be impacted, based on the spokesperson.

The newest spherical of layoffs at Liberty Mutual comes as a number of main US insurers make reductions to their headcount.

GEICO rival Farmers Insurance coverage minimize 2,400 employees, round 11% of its headcount, in August.

Organizational and management modifications at Liberty Mutual

The Liberty Mutual spokesperson stated the group was present process a “multi-year transformation” to make sure it’s arrange for future success and to handle rising dangers.

“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 prospects, brokers, brokers and companions,” the spokesperson added.

Liberty Mutual made a spherical of job cuts in July because it sought to restructure its enterprise, slashing 370 positions US-wide.

President and CEO Tim Sweeney additionally spoke about organizational and management modifications on the insurer throughout its second-quarter earnings name in August.

He stated the modifications have been geared toward “enhancing give attention to long-term strategic markets, whereas higher leveraging scale benefits to drive goal profitability and sustainable success.”

Liberty Mutual Holdings reported a web lack of $585 million in Q2 2023, considerably greater than the $343 million web loss throughout the identical quarter in 2022.

Sweeney pointed to elevated disaster losses, particularly from widespread wind and hail occasions in Oklahoma, Texas, and Colorado.

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