Allstate laying off 3,800 employees

Allstate laying off 3,800 employees

NORTHBROOK, Ill. — Allstate Corp. announced Wednesday that it will be laying off 3,800 employees, primarily affecting claims, sales and support roles.

The cuts represent nearly 8% of the Northbrook, Illinois-based insurance giant’s roughly 46,000 employees and are part of a restructuring plan, The Wall Street Journal reported.

“Implementing this plan is difficult as we still deal with the impact of the pandemic but necessary to provide customers the best value. We have expanded transition support for impacted employees including prioritized internal hiring, extended medical coverage, expanded retraining support and help in employment searches,” Allstate Chairman, President and CEO Tom Wilson said in a news release.

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Wilson told the Journal that about 1,000 of the job losses are tied to the company’s pandemic-related refunds to policyholders. As of August, Allstate had distributed $1 billion to customers through its Shelter-in-Place Payback plan in response to a sharp driving decline amid government-ordered shutdowns.

The pandemic resulted in “fewer auto accidents, so you need fewer claims people,” Wilson told the newspaper, noting “somewhere between 25% and 30% are due to the fact that we have fewer claims.”

According to WBBM, the layoffs also coincide with the company’s multi-year “transformative growth plan,” which calls for an increased market share for Allstate through expanded customer access, more competitive prices, and investments and marketing in technology.