Cyber insurance provider Cowbell has announced that it will cut its staff by 12%, a move that will impact 28 employees.
Jack Kudale, founder and CEO of Cowbell, made the announcement in a letter posted on the company’s website.
“This was an extremely difficult call to make and was a last resort, after considering all other options,” Kudale wrote.
Kudale said that although Cowbell had seen strong policyholder growth and “is closing out on its largest quarter to date,” a prolonged soft market and a spike in fixed costs had forced the company to evaluate its organizational structure and cost base.
Kudale said that while the company had made progress in controlling discretionary expenses, “more substantial action” was needed for the company to reach profitability within its target window.
“Internally, this is a tough day for all of us at Cowbell,” Kudale wrote. “I want to stress that there will be no disruption to our distribution, underwriting precision, claims handling, or policyholder experience. We pride ourselves on being easy to do business with and honor our reputation among broker partners and policyholders as an extremely efficient and responsive organization – this will not be affected by these actions.”
Kudale said that employees impacted by the cuts would be offered comprehensive separation packages and outplacement assistance.
“I deeply appreciate all the contributions they have made in our journey thus far and will continue to support and cheer them on in their next endeavors,” he wrote.
Kudale said the company remains on a path to profitability.
“We are actively and successfully executing on our three-dimensional growth plan – widening our geographic footprint, focusing on upmarket opportunities, and building a presence in new markets,” he wrote. “We are now well-positioned to be even more competitive and have the ability to capitalize on new market shifts.”
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