Lemonade makes Metromile layoffs

Lemonade makes Metromile layoffs | Insurance Business America

Lemonade makes Metromile layoffs

Around 60 people – or 20% of the Metromile team – are said to have been laid off following Lemonade’s Metromile deal closure yesterday, according to people familiar with the matter.

In an email to Metromile staff sent from his personal email address, seen by Insurance Business, former Metromile CEO Dan Preston (now SVP of strategic initiatives under Lemonade) thanked colleagues for “all you contributed, sacrificed, and helped build at Metromile”.

“Today’s actions were not what any of us expected as we embarked on this path, and it was naturally a huge shock to all of us,” Preston said in the email.

“But most importantly, it’s no reflection of your performance, talent, or potential.”

The former CEO, who shared his mobile number and said he was “eager to help” affected staff by sharing details with hiring CEOs and VCs, said he was “optimistic that there’s a silver lining in this.”

“I’m 100% confident your next chapter will be an amazing one, because this team is full of incredible talent that will go on to bigger and better things,” Preston said.

Verified Metromile employees posted on forum Blind, with one claiming that staff were notified of cuts at an “all hands” meeting, with one-to-ones for affected staff following this.

Metromile chief financial officer Regi Vengalil has left the business, according to a LinkedIn post.

This is “my last day at Metromile”, Vengalil said in a post dated yesterday.

“I’m so thankful for the chance to work with incredible colleagues and now friends at Metromile and learn insurance from some of the best experts out there. I am still a high NPS Metromile customer and hopeful for the future of the combined company,” Vengalil said.

Metromile’s SVP of communications, Debra Jack has also said on Linkedin that she is no longer with the business.

The Metromile deal closed on Thursday, with the auto telematics business’ shareholders receiving a total of 7.3 million Lemonade shares.

“Most Metromile employees will transition to roles at Lemonade,” Lemonade said in a press release on Thursday.

The deal had been in the works since November of last year and followed the launch of Lemonade Car.

Metromile brings $110 million in car premiums, $155 million in cash, an insurance entity with 49 state licenses, and data from 500 million trips to Lemonade’s table.

Lemonade has not absorbed any debt from Metromile’s balance sheet, Lemonade co-founder Shai Wininger has said.

At least eight US insurtechs have slashed their headcount since June, with some of the latest cuts having taken place at Next Insurance, Bestow, and Thimble.

Lemonade itself reportedly reduced its headcount in April.

A Lemonade spokesperson said: “We’re thrilled that we’ve finalized our acquisition of Metromile, and that we've been able to offer a role at Lemonade to about 80% of the Metromile team. The good-news-bad-news is that this acquisition is synergistic, in that the combined entity is better than the sum of its parts, and can operate with fewer people than were needed to staff the two standalone. This makes the deal compelling to shareholders, but clearly is painful to those who weren't extended an offer to join Lemonade.”

*This article has been updated to add comments received from Lemonade after publication.