Commercial motor insurance provider Zego is letting go of 17% of its workforce after exhausting all other alternatives.
“We wouldn’t be going ahead with this if we hadn’t already explored other options,” declared chief executive Sten Saar in a statement sent to Insurance Business. “We similarly wouldn’t have chosen this path if I didn’t believe it was the right thing to do, but as Zego’s CEO, I have to hold myself accountable for this decision.
“This has been one of the most difficult times for all of us at Zego, and so we are fully committed to supporting the team in the coming days. Looking further ahead, we will be directing all of our energy towards our refocussed priorities; towards building on our growth this year to date; and towards powering opportunities for our customers well into the future.”
According to a spokesperson for the company, Saar informed all ‘Zegons’ of the ‘unavoidable’ headcount reduction on July 11.
“This decision was not taken lightly,” the spokesperson told Insurance Business, “and largely came as a result of increased economic headwinds experienced since the beginning of this year. These headwinds have meant that while Zego continues to grow strongly in 2022, it has also experienced an increase in costs, leading to course adjustments in order to adapt to this new economic environment.
“Zego has endeavoured to make the process fair, thoughtful, and respectful, and is now actively supporting these employees who have contributed so much, as they transition out of the business. Meanwhile, the company has refocussed its priorities for H2 (second half) and beyond – maintaining a laser-focus on serving its customers better than ever before.”
This isn’t the first time that Zego is shedding its workforce. Insurance Business understands that the start-up also made redundancies during the first COVID-19 lockdown.