It will cut approximately 11% of workforce
Insurance News By Steven Byerley
Aug 29, 2023S
Farmers Insurance will lay off about 2,400 employees as part of efforts to streamline its organizational structure, the company has announced.
The layoffs amount to approximately 11% of the company’s workforce. Farmers said the job cuts will help to make the organization more efficient and agile.
“Given the existing conditions of the insurance industry and the impact they are having on our business, we need to take decisive actions today to better position Farmers for future success,” said Raul Vargas, president and CEO of Farmers Group, Inc. “Decisions like these are never easy, and we are committed to doing our best to support those impacted by these changes in the days and weeks to come.”
Farmers is implementing a new strategy to simplify its systems and introduce new approaches that support the success of its employees and agents, the company said. The insurer said it plans to provide additional support to its exclusive and independent agents through improved systems, tools, and data.
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“As our industry continues to face macroeconomic challenges, we must carefully manage risk and prudently align our costs with our strategic plans for sustainable profitability,” Vargas said. “Our leaner structure will make us more nimble and better able to pursue opportunities for growth and ultimately make Farmers more responsive to the needs of our insured customers and agents. There is a bright future – for Farmers and for our industry – and it necessarily will look different than the past.”
Farmers recently said it would not be renewing tens of thousands of policies in Georgia, but was forced to backtrack when the state’s insurance regulator said the non-renewals were “a blatant violation of Georgia law.” The company also previously announced it would exit Florida.
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