Douglas Jones
Stack Overflow lays off 28% of workforce after ChatGPT disruption
The company's CEO Prashanth Chandrasekar said the layoffs are a move to maintain a path to profitability.
LEARN MOREPosted: 7:06 p.m. EDT Oct 19, 2023
Insurance giant Geico said it will lay off about 6% of its total workforce — or about 2,000 employees — as it makes some changes to the business and pushes for a return to the office for remote workers.
Reports said an email to staff was received early on Thursday morning from the company's CEO Todd Combs.
In the email, Combs said the move was meant to "better position" Geico "for long-term profitability and growth," and was implemented "after a thorough evaluation across all lines of business."
Combs said the company would be "reducing" its workforce.
For those not affected by the layoffs, Insurance Business reported that employees were informed they would be expected to increase the amount of days they work in-office.
Geico was expected to fully implement the return to office policy by Jan. 1, 2024.
By Thursday afternoon it did not appear that Geico had released a public statement about the changes.
Combs said in the email to staff, "We believe that being in the same place can foster a sense of community and connection, and that meaningful time together will allow us to build relationships that create trust and strengthen our sense of belonging."
Hours after the news, a thread about the layoffs on Reddit received scores of comments from platform users who said they were current and former Geico employees.
In the thread, users spoke about being laid off after decades with the company, with some doubting trust could be rebuilt by the return-to-office policy laid out by Combs after the layoff announcement.
Established in 1936 by Leo and Lillian Goodwin, Geico said the company was formed amid the Great Depression. The company says it employs around 38,000 associates and is considered the third-largest private passenger auto insurer in the U.S.
