Los Angeles, California-based Farmers Insurance, a major insurer of vehicles, homes, and small businesses, has announced an organizational restructuring, cost-cutting initiative, and a reduction in its workforce.
The company's actions will impact 2,400 employees, about 11% of the company's workforce, across all lines of business.
According to Raul Vargas, CEO and President of the Farmers Group, “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. 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.”
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?