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Boston-based global insurer Liberty Mutual has confirmed that it is laying off about 850 workers, or 2% of its workforce, in the U.S.

The terminations will be felt in several departments this month and many will become effective by the end of the year, according to a company spokesperson. Employees in Liberty’s Retail Markets and Global Risk Solutions business units, as well as technology and other corporate groups will be affected.

“We are initiating a multi-year transformation to ensure our organization is set up for future success and to address the rise of emerging risks,” the company said in a statement. “We will reimagine how we do business with a focus on efficiency and effectiveness; and will prioritize our efforts to focus on how we can provide the most value for our customers, agents, brokers and partners.”

These 850 Liberty Mutual layoffs are in addition to about 370 jobs lost in the U.S. as the result of a restructuring in August.

For the first half of 2023, Liberty Mutual recorded a net loss of $650 million compared to a gain of $156 million during the same time in 2022 and a gain of more $1.6 billion for the first half of in 2021.

Liberty Mutual is the latest insurer to announce staff reductions. As reported by Å˽ðÁ«´«Ã½Ó³»­ Journal earlier this month, GEICO announced it is laying off 2,000 associates, or about 6% of the workforce.

“This will allow us to become more dynamic, agile, and streamline our processes while still serving our customers,” GEICO president and chief executive officer Todd Combs said in a letter to employees.

GEICO’s layoffs follow similar moves by other insurers. American Family Å˽ðÁ«´«Ã½Ó³»­ last week confirmed staff reductions. Farmers Å˽ðÁ«´«Ã½Ó³»­ announced in August that it would let go 11% of its workforce, about 2,400 workers.

The staff cuts at Farmers came after it and other major insurers, including State Farm and Allstate, said they would stop writing new business or renewals in Florida, California and other states, as the industry manages the impact from natural disasters, inflation and rising replacement and costs and other loss adjustment expenses around the country.

Online insurance agency EverQuote said in July it would lay off nearly 100 employees at its Evansville, Indiana office as part of plans to reduce its non-marketing operating expenses by over 15%.

Companies in the insurtech space have also been downsizing. Branch Å˽ðÁ«´«Ã½Ó³»­, Corvus Å˽ðÁ«´«Ã½Ó³»­ and Pie Å˽ðÁ«´«Ã½Ó³»­ announced layoffs earlier this year. Last year, Thimble, NEXT, Lemonade, Hippo and Root were among the insurtechs trimming their workforces.

Topics New Markets