As part of an effort to streamline its operations and better position the company for future growth and profitability, Farmers Insurance has announced that it will be releasing approximately 2,400 employees, or about 11% of its workforce, across all lines of business.
The company said the change in structure is intended “to create a more efficient organization” and comes after “a thorough evaluation of the company and reduction of operational expenses across Farmers.”
Farmers said its new strategy will “reinvent how insurance is delivered,” while “simplifying systems and introducing innovation that supports the success of its employees and agents.”
“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., said in a release. “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 cited the various macroeconomic challenges the industry faces and the importance of being prudent with how they manage risks and align costs to create “sustainable profitability.” Having a leaner operating structure will better enable the company to react more quickly to market conditions and the needs of their agents and policyholders.
The company said it will share more details on how it will continue supporting agents with better tools, data and systems, as well as a wide range of industry-leading products.
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