CALIFORNIA, USA — The California-based Farmers Insurance company shared Monday that it will be laying off about 2,400 employees.
Those employees make up about 11 percent of those who work for the employer, the company said Monday.
Leaders said they're taking "strategic actions" to ensure a profitable future and create what they're calling a "more simplified and streamlined organizational structure and a new approach to how it delivers insurance products to its agents and customers."
These layoffs, which will take part across all lines of business in the company, will help reduce operational expenses across Farmers, officials said.
A number of Michigan workers call Farmers Insurance an employer. 13 ON OUR SIDE asked for the number of impacted employees in the state. They declined to share out of respect for the impacted employees.
“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 & Chief Executive Officer of Farmers Group, Inc. “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.”
“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.”
Farmers Insurance is a group of insurers that offer insurance for cars, homes, small businesses, and a wide range of other financial service products.
If you are a Michigan employee impacted by these layoffs, we want to hear from you! Send us an email at news@13onyourside.com.
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