Farmers Insurance has announced that it will let go of around 2,400 employees, which is about 11% of all its workers. The company’s leader, Raul Vargas, mentioned that these choices are tough, and they will do their best to help those affected by these changes.
The reason behind this decision is to make the company more profitable in the long term. They want to make their structure more efficient and have spent time looking at how to spend less money on their operations.
Because of the current conditions in the insurance industry, Farmers believes they have to do things today to set themselves up for success later on.
Farmers, which offers home, auto, and small business insurance, plans to change the way they do things in the future. They want to make their processes simpler and bring in new ideas for their workers and agents.
Recently, Farmers has stopped offering insurance in Florida and California. In Florida, they stopped selling new policies for homes, and they also decided to stop offering some types of auto and home insurance. In California, they limited the number of new homeowners’ insurance policies they sell because it’s more costly and there’s a risk of wildfires.
Vargas explained that the insurance industry is facing challenges, so Farmers has to be careful with its expenses. By making their structure leaner, they can react faster to opportunities and better serve their customers and agents.
Vargas, who became the CEO earlier this year, changed the company’s policy about working from home. Now, employees who live within 50 miles of a Farmers office have to come to work at least three days a week starting in September.