APRIL 12, 2023 — 83 EMPLOYEES IN ANOTHER ROUND OF LAYOFFS
The company has implemented another round of layoffs, trimming the workforce by 4%, or 83 employees.
According to a company statement, "As part of a restructure of our business, Hagerty announced that we are reducing our workforce by 4%, 30 of whom are based in Traverse City, We remain committed to Traverse City and still employ more than 600 people in the Grand Traverse Region.”
"Although a small percentage of our team members were impacted by this extremely tough decision, we are committed to being as supportive as possible to those leaving us. We are providing severance, a benefit stipend, and career transition services.
"This move is intended to position us for continued long-term growth and profitability as a leading automotive lifestyle brand. Hagerty continues to drive strong business momentum, including revenue growth of 27% in 2022, and look forward to maintaining this momentum in 2023 so we can invest in our people, brand, and technology. We will miss our team members who were impacted by the restructuring."
DECEMBER 28, 2022 — Original post…
Traverse City, Michigan-based Hagerty, a specialty insurer specializing in classic car insurance for collector vehicles, has announced a 6% reduction in the company's workforce to cut costs and improve earnings.
The layoffs will impact 103 employees.
According to the company, "Hagerty continues its focus on managing expenses in order to achieve growth and profitability goals. Although a small percentage of our team members were impacted by this extremely tough decision, we are committed to being as supportive as possible by offering transition assistance, including outplacement services and severance benefits to displaced employees based on various factors including years of service," the company statement read.
“During the past few years, we have relied heavily on high-priced contractors for digital product development, software engineering, and other projects. We are winding down many of these contracts and in-sourcing the remaining work at a lower total cost. We are carefully looking at all of our third-party expenses and working to reduce scope, price, or both. Additionally, we are viewing our various initiatives and prioritizing the ones that add the most value to our core insurance, membership, and marketplace businesses and deemphasizing the ones that have dragged on profitability during the last few years.”
As a result, Hagerty was “taking the necessary steps to improve profitability and cash flow in 2023, including cost containment initiatives and prioritization of resources. The financial health of the company remains sound, as indicated by our double-digit year-over-year revenue growth" in the third quarter of 2022.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?