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 stated in a letter to workers despatched this morning.

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

“To raised place ourselves for long-term profitability and progress, and after a radical analysis throughout all traces of enterprise, we’re decreasing our workforce by roughly 2,000 associates, or 6% of our whole workforce,” Combs wrote to employees. “It will permit 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 neighborhood and connection, and that significant time collectively will permit us to construct relationships that create belief and strengthen our sense of belonging,” Combs stated within the letter. “In that vein, we are going to quickly be growing our collective presence within the workplace.

“Your leaders shall 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 anticipate?

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

Affected workers 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.

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

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

“Very tough interval” accountable to modifications, GEICO CEO says

The CEO highlighted earlier “vital modifications” that had been made to the enterprise because it sought to handle a “very tough 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 components” which have led to mixed ratio and loss prices rises “alongside the whole 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 transferring forwards. These have been:

• Serving prospects of their channel of selection
• Turning into primary in auto insurance coverage and increasing its product providing whereas maintiaing worth and profitiabilty self-discipline
• Driving monetary rigour by way of “operational excellence and effectivity”
• Stabilizing and modernizing expertise and knowledge structure
• Remodeling firm tradition

“We’ll present particulars on these shared priorities and the working rules that can 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 choices we’re making to maneuver our firm ahead.

“This can be 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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