Liberty Mutual slashes around 850 jobs as part of 'transformation initiative'

Around 2% of its US workforce to go

Liberty Mutual slashes around 850 jobs as part of 'transformation initiative'

Insurance News

By Gia Snape

Liberty Mutual is set to cut around 850 jobs, or about 2% of its US workforce this month, making it the latest insurer to announce layoffs in recent weeks.

In a statement issued to Insurance Business, a Liberty Mutual spokesperson confirmed that the move was made “as part of a company transformation initiative.”

“We have made the difficult decision to eliminate approximately 850 positions, nearly all in the US, across several functions this month, many of which are effective by the end of the year,” the spokesperson said.

“Impacted employees will be eligible for severance and outplacement assistance and are encouraged to apply for other positions within the organization.”

Employees in Liberty Mutual’s US retail markets and global risk solutions business units, as well as technology and other corporate groups, will be impacted, according to the spokesperson.

The latest round of layoffs at Liberty Mutual comes as several major US insurers make reductions to their headcount.

Auto insurance giant GEICO is laying off 2,000 staff, or about 6% of its workforce, according to a letter from the company’s CEO Todd Combs last week. Other firms that have announced layoffs this month include Germania Insurance and Cowbell.

GEICO rival Farmers Insurance cut 2,400 staff, around 11% of its headcount, in August.

Organizational and leadership changes at Liberty Mutual

The Liberty Mutual spokesperson said the organization was undergoing a “multi-year transformation” to ensure it is set up for future success and to address emerging risks.

“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,” the spokesperson added.

Liberty Mutual made a round of job cuts in July as it sought to restructure its business, slashing 370 positions US-wide.

President and CEO Tim Sweeney also spoke about organizational and leadership changes at the insurer during its second-quarter earnings call in August.

He said the changes were aimed at “enhancing focus on long-term strategic markets, while better leveraging scale advantages to drive target profitability and sustainable success.”

Liberty Mutual Holdings reported a net loss of $585 million in Q2 2023, significantly higher than the $343 million net loss during the same quarter in 2022.

Sweeney pointed to elevated catastrophe losses, specifically from widespread wind and hail events in Oklahoma, Texas, and Colorado.

What are your thoughts on the latest round of layoffs at Liberty Mutual? Tell us in the comments.

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