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

In an announcement issued to Insurance coverage Enterprise, a Liberty Mutual spokesperson confirmed that the transfer was made “as a part of an organization transformation initiative.”

“Now we have made the tough determination to remove roughly 850 positions, practically all within the US, throughout a number of features this month, a lot of that are efficient by the top of the 12 months,” the spokesperson mentioned.

“Impacted workers shall be eligible for severance and outplacement help and are inspired to use for different positions inside the group.”

Workers in Liberty Mutual’s US retail markets and international danger options enterprise models, in addition to know-how and different company teams, shall be impacted, in response to the spokesperson.

The newest spherical of layoffs at Liberty Mutual comes as a number of main US insurers make reductions to their headcount.

GEICO rival Farmers Insurance coverage reduce 2,400 employees, round 11% of its headcount, in August.

Organizational and management adjustments at Liberty Mutual

The Liberty Mutual spokesperson mentioned the group was present process a “multi-year transformation” to make sure it’s arrange for future success and to deal with rising dangers.

“We are going to reimagine how we do enterprise with a concentrate on effectivity and effectiveness; and can prioritize our efforts to concentrate on how we are able to present probably the most worth for our clients, brokers, brokers and companions,” the spokesperson added.

Liberty Mutual made a spherical of job cuts in July because it sought to restructure its enterprise, slashing 370 positions US-wide.

President and CEO Tim Sweeney additionally spoke about organizational and management adjustments on the insurer throughout its second-quarter earnings name in August.

He mentioned the adjustments have been aimed toward “enhancing concentrate on long-term strategic markets, whereas higher leveraging scale benefits to drive goal profitability and sustainable success.”

Liberty Mutual Holdings reported a web lack of $585 million in Q2 2023, considerably greater than the $343 million web loss throughout the identical quarter in 2022.

Sweeney pointed to elevated disaster losses, particularly from widespread wind and hail occasions in Oklahoma, Texas, and Colorado.

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