Farmers to cut 2400 jobs in strategic play for future profits
US insurer Farmers is to trim 11% percent of its workforce across all lines of business in a strategic move to align the company for sustainable profitability in the future. The company’s chief executive said that “decisions like these are never easy” but are necessary to reduce costs and prudently manage risks given the current macroeconomic environment.
Farmers, which provides insurance for automobiles, homes and small businesses and a wide range of other insurance and financial services products, is executing a new strategy to better position itself for a future of long-term profitability and growth by creating a more simplified and streamlined organisational structure.
The move will see the company part ways with approximately 11% of its workforce, amounting to about 2,400 employees, across all lines of business.
Farmers said these measures are intended to create a more efficient organisation, and they follow a thorough evaluation and reduction of operational expenses across the company.
“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 chief executive officer of Farmers Group. “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.”
Vargas continued: “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. 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.”
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