NEW YORK (AP) — Farmers Insurance coverage mentioned Monday it can lay off 11% of its workforce — about 2,400 staff — as a part of a company restructuring aimed toward growing its effectivity and long-term profitability.
The California-based insurer owned by Swiss large Zurich Insurance coverage Group mentioned the job cuts will affect all traces of its enterprise. Monday was the final working day on the firm for many staff impacted by the layoffs, Farmers confirmed to The Related Press.
In a press release saying the job cuts, Raul Vargas, Farmers Group Inc. president and CEO, alluded to “current situations” within the insurance coverage trade.
“As our trade continues to face macroeconomic challenges, we should fastidiously handle danger and prudently align our prices with our strategic plans for sustainable profitability,” Vargas mentioned. “Our leaner construction will make us extra nimble and higher in a position to pursue alternatives for progress and finally make Farmers extra attentive to the wants of our insured clients and brokers.”
In latest months, Farmers — together with different insurers together with Allstate and State Farm — have pulled again on property insurance coverage in states like Florida and California. As these areas turn out to be more and more vulnerable to pure disasters, from hurricanes to wildfires, within the period of local weather change, the insurers have cited the necessity to scale back danger publicity and working prices — however critics have accused the businesses of exacerbating the cost-of-living disaster.
Monday’s layoff announcement from Farmers follows mass job cuts seen at a handful of corporations up to now yr — together with T-Cell, Google, Meta, Amazon and Microsoft. Past the tech sector, layoffs have additionally hit Disney park staff, newspapers and a few greater schooling jobs.
