Farmers Insurance is set to undergo a significant reduction in its workforce, with around 2,400 employees facing layoffs, as announced recently by the US-based company. This decision will affect approximately 11 per cent of the total workforce, according to the official press release.
According to Farmers Insurance, the company’s strategic aim is to enhance its long-term profitability and facilitate future growth. To achieve this, the organisation is not only streamlining its organisational structure for greater efficiency but also adopting a fresh approach to the delivery of insurance products to both agents and consumers.
Raul Vargas, CEO, Farmers Group, tied these job cuts to the current dynamics of the insurance industry and its impact on their operations. This move follows the company’s earlier choice to discontinue offering Farmers-branded auto, home and umbrella policies in Florida, along with scaling back certain coverage options in California. In regard to the Florida decision, the company justified it as a necessary step to prudently manage their risk exposure.
It’s worth noting that Farmers Insurance is not alone in taking such measures within California, a trend that has been previously highlighted by FOX Business. In a statement on August 28, 2023, CEO Raul Vargas expressed the company’s commitment to providing the best possible support to those affected by these changes in the coming days and weeks.