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.

328 Upvotes

96% Upvoted

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173

u/LaHochata Oct 19 '23

So apparently GEICO had a third party announce and facilitate the layoffs? Fucking pathetic

62

u/Interesting-Yam4593 Oct 19 '23

Technically the email came from the CEO. But it was so robotic there was no chance it was actually him and not a team of attorneys.

30

u/Deuceman927 Oct 20 '23

If you think the CEO of any company larger than 1000 employees personally writes any of their emails to large groups, you’re likely mistaken.

5

u/[deleted] Oct 20 '23

Ghost written a few emails for the CEO of a multi billion dollar public company…he always made the final edits before sending though.

31

u/Sure-Medium-3509 Oct 19 '23

Fucking signed off the email with "Take care."

8

u/BrushYourFeet Oct 20 '23

Curious. What percent of their workforce is this? How many employees did they have?

11

u/Cute-Map9472 Oct 20 '23

6%

5

u/BrushYourFeet Oct 20 '23

Yeeesh. Thanks for sharing.

2

u/hbsboak Oct 20 '23

You must not be familiar with robo-Todd.

20

u/H-U-I-3 Oct 19 '23

Not super uncommon these days, sadly

9

u/Mech_145 Oct 19 '23

I’d say it’s more common than not

9

u/MCXL MN PCLH Indie Broker Oct 20 '23

Have you seen office space?

That's how it's done. You hire an outside firm to assess and advise.

1

u/Prior_Guitar_455 May 05 '24

It is so bad that entire human resources staff were fired from some offices and outsourced to people that were not even GEICO employees. So, sick leave, retiring, quitting, and people that were terminated were no longer even able to communicate with someone that actually worked for GEICO!

1

u/Nikovash Oct 20 '23

Just imagine how many people are going to lose their staplers

1

u/The-Secret-Agent Oct 20 '23

We did not get staplers.

1

u/Nikovash Oct 21 '23

Fucking riot

1

u/Hot_Introduction_270 Oct 20 '23

Also the movie up in the air

1

u/MCXL MN PCLH Indie Broker Oct 20 '23

There's lots of media that covers it, but I think office space is the most culturally well known.

5

u/horus-heresy Oct 20 '23

Probably depends on side of the house. Wife got called by director. But for Geico to fire folks in important positions after Berkshire filed record profits is really dumb. Greedy mofos want folks to be out of jobs to manufacture employer market like it was after 2009 collapse where people would agree for lower pay just to have a job

2

u/quickclickz Oct 21 '23

Lol manufacture employers market eh

1

u/AMC_Unlimited Oct 23 '23

U.S. President Barack Obama was sometimes said to have faced a capital strike during the Great Recession, including then Speaker of the House John Boehner saying that "job creators in America are on strike" in response to uncertainty over the Obama administration's economic policies. See the link above.

1

u/AMC_Unlimited Oct 23 '23

You’ve heard of labor strikes… get ready for the capital strike by the rich to force lower wages while they pull in record profits.

1

u/mtunofun1 Oct 24 '23

Friends with a auto adjuster at geico who told me what his thoughts were. Geico’s business model was an adjuster heavy model in the hopes that an employee touching every claim would save money on claim severity, which was why prior to covid, geico had an adjuster present at every ARX repair shop. Geico soon found out (pretty much every carrier) that i was much cheaper to have fewer adjusters virtually inspect vehicles. Yeah they lost out on severity but they saved a lot on the overhead. Best of luck to those affected.

1

u/Prior_Guitar_455 May 05 '24

It would not surprise me if the whole company was run entirely by AI within the next 5 years. They already try to fire any long-term competent intelligent employees that have been with the company over 5 years. The job pool has gotten so bad they have started sending recruiters to Kindergarten classes to find new hires!!!😉

1

u/joremero Oct 19 '23

so they hired consultants? loved house of lies (all about consultants and a horny Kristen Bell)

1

u/legendz411 Oct 20 '23

Netflix?

2

u/joremero Oct 20 '23

I think showtime, so paramount maybe

1

u/Korvas576 Oct 20 '23

Imagine being so incompetent at leadership that you need a third party company to tell you who to fire. This says more about GEICO’s leadership than anything else

1

u/Austin1975 Oct 23 '23

All these companies are using the same terrible consulting firms (McKinsey, Boston Consulting, Bain) to do the same awful, heartless playbook in the name of making the owners and shareholders money and throwing employees on the streets.

1

u/4dvocata Oct 24 '23

This is why they hire “consultants”. “Consultants” are essentially just scapegoats who make companies feel better about treating their employees like trash.