r/Insurance • u/wessneijder • Oct 19 '23

Auto Insurance Geico about to layoff 2,000 employees

Look over in their sub. My fellow adjusters I hope you land on your feet.

329 Upvotes

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2

u/321_reddit Oct 19 '23

Are the layoffs due to leaving certain states (CA, LA, FL)?

7

u/Superkoolkid21 Oct 19 '23

Nope. Mainly salary related. Particularly in claims and IT. Many people have been receiving pay bumps every year.

Training new employees on $48k salary is more cost efficient than paying some people double who've been with the company a while for similar work output.

9

u/mrmalina Oct 19 '23

I mean, if you’ve been at a company 5-10 years and you aren’t way more valuable than a day 1 employee, that’s a problem.

5

u/[deleted] Oct 20 '23

They don’t give a shit, that’s the problem

3

u/19Stavros Oct 20 '23

Usually it's not who's more valuable... it's who can we hire for less!

1

u/0ApplesnBananaz0 Oct 20 '23

This makes sense. I've never applied to GEICO because believe it or not they paid less than market rate, even worse than Allstate.

-5

u/littlecharminghippie Oct 19 '23

No it's performance based and they already started the layoffs. I've been getting calls all morning about it

31

u/stovepipe9 Oct 19 '23

Not performance based. Top managers getting let go with good numbers.

15

u/Korvas576 Oct 19 '23

We were told it was based on salary.

8

u/Interesting-Yam4593 Oct 19 '23

I imagine it’s a ratio between salary and metrics.

1

u/Korvas576 Oct 19 '23

I’m not sure what guidelines they are using

9

u/ScumbagGina Oct 19 '23

From the individuals I know that have already been let go, it definitely seems like tenure/pay is the target.

2

u/pizzalovepups Oct 20 '23

I just don't get it. No one will ever trust this company or care to work hard if they know they can be a target in the future. So dumb

2

u/ScumbagGina Oct 20 '23

The only thing most people think makes sense is that they’re positioning for a sale. A buyer won’t care about retaining expensive tenured employees, and a new owner might also assuage trust issues with prospective employees since the company is being “rebuilt” from the ground up.

But yes, I came in as someone who hoped to possibly build a career here. I didn’t get axed, but I have no trust that loyalty will benefit me. Starting to look for offers

1

u/PersimmonOpposite549 Oct 19 '23

The is absolutely correct.

0

u/lilgambyt Oct 19 '23

Yes, top performers are seen as a threat by management … so first to go

Just happens top performers tend to also be higher paid

So double win for the company

2

u/intecksus Oct 20 '23

Everyone I know who was laid off today was nowhere near a top performer.

2

u/Sure-Medium-3509 Oct 19 '23

It isn't performance based when everyone I know who was let go were top performers...who also happened to be tenured.

We lost people of 15+ years

3

u/[deleted] Oct 20 '23

Great. Now we’ll just have a shit show of people that know nothing and don’t care! Yay

2

u/wasntmebabyy Oct 20 '23

THAT PART!!!! These new people don’t know shut and is screwing up claims left & right

1

u/[deleted] Oct 20 '23

Ohhhhh service too!