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Liberty Mutual plans to cut 850 staff

Posted On: Oct. 27, 2023 11:35 AM CST


Liberty Mutual Insurance Co. confirmed Friday it will lay off 2% of its U.S. workforce, or about 850 people, as part of a multi-year transformation of its business.

The job cuts will affect staff in its U.S. retail markets and global risk solutions business units, in addition to technology and other corporate groups, a Liberty Mutual spokesman said in an email.

Positions to be eliminated are nearly all in the United States and many of the cuts will be effective by year-end, the spokesman said. Laid-off staff will be eligible for severance and outplacement assistance and are encouraged to apply for other positions within the organization, he said.

The spokesman declined to comment on whether further job cuts can be expected or whether the insurer’s fourth-quarter earnings will be affected.

In July Liberty Mutual said it would cut about 370 U.S. positions in a reorganization of its personal lines and small commercial insurance business following the sale of units in Europe and Latin America.

The insurer reported a net loss of $585 million for the second quarter, as natural catastrophe claims mounted. It is due to report its third-quarter financial results Nov. 9.

Farmers Insurance Group Inc., a unit of Zurich Insurance Group AG, and GEICO Corp., a unit of Berkshire Hathaway, recently announced job cuts amid challenging market conditions due to rising catastrophe losses.

Auto insurer GEICO said earlier this month it would cut 2,000 jobs, or 6% of its workforce, and in August, Farmers Insurance said it would cut 11% of its workforce, or about 2,400 employees, across all lines of business.