Matthew Layson (@matthewlayson) sheds light on the recent spate of layoffs in the insurance industry in an introspective TikTok video with nearly 300,000 views.
His in-depth analysis titled “#geico #libertymutual #layoffs #insurance” begins with some surprising statistics. “So Geico laid off 2,000 people, about 6% of its workforce. Liberty Mutual just laid off 850 people, about 2% of its workforce. We’re already talking about farmers and their 11% layoffs. I did. What on earth is going on in the insurance industry?”
Mr. Leyson did not hesitate to criticize vague company public statements surrounding the layoffs, saying, “Despite the obvious challenges, we have positioned ourselves to say we are doing well.” He described them as “rogues from large corporations who are trying to do something.” He shared insights from current and former employees from a variety of companies, revealing a common sense of impending layoffs. “First there is a change in leadership, then some benefits are cut off, and then suddenly there is a layoff,” he explained, highlighting red flags noticed by the employees he spoke to.
TikTokers also point out that these companies lacked consideration for their employees. He recounted stories of surprise layoffs and ill-informed decisions, such as reorganizing commercial insurance professionals into the personal insurance division, ignoring the individual skill sets needed. He insinuates that much of it is “corporate laziness.”
Leyson also explains the economics that led to these layoffs. He explains how insurance companies, driven by a booming market, became complacent and overstaffed. “Many insurance companies have gotten a little lazy, overinflated and taken on jobs and roles that they probably don’t really need,” he observes. This over-expansion, combined with the need to reduce costs, has led to unfortunate but necessary staff reductions to strengthen profitability.
This analysis resonated with the TikTok community, with many commenters sharing their thoughts and experiences in the comments. One user speculated, “Maybe the layoffs will drive up the stock price before the numbers are released.” Another user who works in insurance claims expressed bewilderment. “I’m advocating for my rights, but we’ve already reached our limits. The talent pool is aging, and it’s hard to continue to retain talent. The layoffs are troubling,” they wrote. Ta.
Mr. Leyson’s concluding remarks highlight the pressing challenges for insurance agencies, with more mistakes and difficulties expected as they replace inexperienced staff. “We’re going to be dealing more often with people who don’t know what we do,” he warns, pointing to the industry’s talent acquisition problems.
This video and the discussion it sparked on TikTok. confused state Recently, the insurance industry has seen a noticeable reduction in personnel and a shift in strategy. As Layson and his TikTok community suggest, these changes reflect broader economic trends and trends within the industry, impacting employees and consumers alike.
Many news outlets are writing about the impact of the layoffs. Geico, farmersand liberty mutual. Insurance Business America writes that in addition to Geico’s layoffs, the company: is prioritizing a “back-to-office” business model, which could be the result of a “strategic shift” mentioned by Greg Barrett, CEO of insurance consultancy Water Street Company. .
Repairer Driven News quoted Barrett as saying that there have been major changes in the insurance industry recently. Retrenchments and structural changes are necessary evils to streamline operations and aim for profitability in the long term. ”
But the layoffs aren’t just affecting the insurance industry, but the technology industry as well. Big companies like Google, Amazon, Meta, and Microsoft are cutting tens of thousands of jobs, leaving thousands of once-employed people dusting off their resumes and looking for work again.
The Daily Dot reached out to Geico via email to Layson via a comment on TikTok for further details on the situation.
*First published: November 18, 2023 at 6:21pm CST
Jack Alban is a freelance journalist for the Daily Dot, covering relationship trends and social media topics and how real people are reacting to them. He strives to create not-so-average viral posts by always incorporating evidence-based research, current events, and facts relevant to these stories.