Geico said “inflation and rising health care costs” are to blame.
AllState had layoffs last week.
Farmers laid of 2,400 in August.
It does look like people can’t afford insurance like they used to. Rising costs of insurance are resulting in fewer employees that can keep a job.
GEICO, one of the nation’s largest insurance companies, announced Thursday that it is laying off 2,000 people nationwide — 6% of its workforce. The cuts include at least 22 of the 3,000 employees at its Lakeland office on Pipkin Road.
A memo from GEICO Chairman, President and CEO Todd Combs blamed inflation, supply-chain issues and rising medical costs.
“Levels of inflation that we haven’t seen in decades, delays in parts or labor shortages extending time to repair, rising medical costs, and other factors have caused our loss costs and combined ratio to increase, alongside the entire industry,” Combs wrote in a memo emailed to employees Thursday morning as the layoffs began.
The layoffs, he said, would allow GEICO “to better position ourselves for long-term profitability and growth .. (and) allow us to become more dynamic, agile, and streamline our processes while still serving our customers … This very difficult decision was not taken lightly. We recognize we’re saying goodbye to beloved colleagues and friends, and as a leadership team we are committed to supporting those affected in the days ahead.”
h/t StayCurious