GEICO has announced a layoff of 25 employees at its North Liberty office, part of the company’s plan to reduce its nationwide workforce.
The layoff was confirmed through a Nov. 1 notification posted to the Iowa WARN (Worker Adjustment and Retraining Notification) Act website. The layoffs were announced by the company Oct. 23 and will be effective Dec. 18.
In a company-wide memo to employees Oct. 19 titled “Positioning GEICO for the future,” GEICO chairman, president and CEO Todd Combs said the company was reducing its overall headcount by “roughly 2,000 associates, or 6% of our global workforce.”
“This will allow us to become more dynamic, agile, and streamline our processes while still serving our customers,” Mr. Combs wrote in the memo.
He also indicated that GEICO planned to offer “career transition assistance, including individual career coaching sessions, assistance with resume updates, on-demand interviewing and networking resources, and tips to enhance one’s social media presence” to affected GEICO employees.
Those employees whose jobs have been cut will be eligible to apply for other open jobs at GEICO, according to the memo, “and we will provide existing benefits, including health insurance, to the notice period.”
Mr. Combs also said that GEICO would be prioritizing a return to the office, writing that GEICO employees would be required to increase the number of workdays they spend working on-site. Full implementation of the new in-office policy is expected by Jan. 1, 2024.
“We believe that being in the same place can foster a sense of community and connection, and that meaningful time together will allow us to build relationships that create trust and strengthen our sense of belonging,” he wrote. “We understand that additional time in the office is a shift from what has been the practice across most companies and industries these past few years. We will provide time to get accustomed to this policy.”
Mr. Combs also outlined a new “path forward” for GEICO, focusing on customer service, “financial rigor” and a transformation of the company’s culture.
“Relatedly, we must do a better job of communicating and providing the why behind the decisions we are making to lead our company forward,” he wrote in the company memo. “This is a priority for our leaders, and you can expect to see a greater emphasis on associate communication in the months ahead.”
READ: Full memo from GEICO’s Todd Combs
GEICO opened its 50,000-square-foot North Liberty office at 2320 Landon Road in September 2018, and as of August 2019, the facility had about 500 employees.
According to an article posted by Repairer Driven News, GEICO is the latest in a number of insurers to make cutbacks as they struggle to remain profitable amid the “challenging landscape,” In late August, Farmers Insurance said it was laying off 11% of its employees throughout all its business lines to better position itself for “long-term profitability and growth.”
