Farmers Insurance is doing a company-wide reorganization. Close to 11% of the Farmer’s employees — across all lines of business — will be let go as the reorganization progresses.
The company says the reason is to “create a more efficient organization.”
That means — as the company’s news release said — “After a thorough evaluation of the company and reduction of operational expenses across Farmers,” about 2,400 employees will soon be out of work.
Farmer’s President & CEO Raul Vargas said the changes will reinvent how insurance is delivered and will introduce new innovations that will help the remaining employees and agents be more successful.
“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,” Vargas said. “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.”
He said the big reason for the change is how the company mergers risk management with being able to remain profitable. Vargas said a leaner operation will help Farmers react better, and more quickly, to changing market conditions and the needs of policyholders and agents.
More details coming soon.
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