(CTN News) – The GEICO insurance company has confirmed to 2 On Your Side that it will lay off a total of 5.5% of its workforce in Western New York at the end of the year.
A spokesperson for the company declined to give a number of employees, but the privately owned insurance company employs more than 40,000 people throughout the country.
In a letter to workers, GEICO Chairman, President & CEO Todd Combs informed them that GEICO would be laying off 2,000 employees in the near future.
Combs explained to his staff that the company will be able to become more dynamic, agile, and streamline our processes while still being able to provide excellent customer service, as Combs explained to his staff.
As a team, we are committed to providing support for those affected in the days to come, as we say goodbye to beloved colleagues and friends, and we take our responsibility to support them as a group.
It had previously been reported that GEICO had been on a hiring spree in Western New York. There were more than 600 associates hired by the company in Buffalo in 2020, and another 350 were targeted to be hired in 2021.
For those who are being laid off by the insurance firm, which is owned by Warren Buffett’s Berkshire Hathaway, the company intends to offer career transition assistance, career coaching, and assistance updating their resumes for those who are being laid off.
‘Foster a sense of community and connection within the organization’
Based on the letter, GEICO believes spending time in the office paired with virtual work will help it build its company culture. Therefore, the company has asked employees to return to the office as soon as possible.
Our belief is that being in the same place can foster a sense of belonging and community. Our hope is that spending meaningful time together will allow us to build relationships that will promote trust and help us to feel a sense of belonging.”
In the next few weeks, managers will share the number of in-office days that employees need to complete over the course of the year in order to implement the new work policy on January 1, 2024.