Boston-based Liberty Mutual has confirmed reports that it plans to lay off approximately 850 people or 2% of its workforce. This second round of layoffs was announced just before the company issues its 3rd quarter results and two months after its announcement earlier this year of approximately 370 layoffs.
The news, which was first reported in Forbes and the Insurance Journal, was confirmed by Agency Checklists with a company spokesperson.
“As part of a company transformation initiative, we have made the difficult decision to eliminate approximately 850 positions – nearly all in the US – (about 2% of our US employees) across several functions this month, many of which are effective by the end of the year,” said the Liberty Mutual representative. “Impacted employees will be eligible for severance and outplacement assistance and are encouraged to apply for other positions within the organization.”
In addition to Liberty Mutual, both GEICO and Farmers Insurance also have announced layoffs as a result of the hard market in which the industry finds itself in. In July, Farmers announced that it would be laying off 11% of its work force or approximately 2,400 employees as part of a similar reorganization strategy, while GEICO announced in October layoffs of 2,000 associates or about 6% of its workforce.
