Farmers Insurance, based in the United States, has announced a significant reduction in its workforce, with approximately 2,400 employees facing layoffs. According to the official press release, this decision will affect approximately 11% of the total workforce.
Farmers Insurance’s strategic goal, according to the company, is to improve long-term profitability and facilitate future growth. To accomplish this, the organisation is not only streamlining its organisational structure for greater efficiency, but it is also taking a new approach to delivering insurance products to both agents and consumers.
Farmers Group CEO Raul Vargas attributed the job cuts to the current state of the insurance industry and its impact on their operations. This decision follows the company’s earlier decision to stop offering Farmers-branded auto, home, and umbrella policies in Florida, as well as to reduce certain coverage options in California. Concerning the Florida decision, the company justified it as a necessary step towards prudent risk management.
It’s worth noting that Farmers Insurance is not alone in taking such measures in California, a trend that FOX Business has previously highlighted. CEO Raul Vargas expressed the company’s commitment to providing the best possible support to those affected by these changes in a statement issued on August 28, 2023.