Major US auto insurer Allstate has announced its plans to cut 3,800 jobs as part of its multi-year transformative growth plan.

The move will affect employees working in the claims, sales, service and support functions of the company.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Allstate said its transformative growth plan aims to scale up personal property-liability market share by broadening customer access, enhancing customer value and investing in marketing and technology.

The company combined its Esurance and Allstate brand direct operations in a bid to expand the customer access.

Improving customer value includes improving the competitive price position of auto insurance, which requires cost reductions to maintain margins, it said.

Commenting on the development, Allstate chair, president and CEO Tom Wilson said: “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.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Allstate expects this latest move, which is estimated to affect 8% of its total workforce, to incur a charge totalling around $290m, with around $210m to $220m to be recorded during the third quarter of this year and around $50m to $60m in the fourth quarter.

These charges are expected to reduce both net income and adjusted net income for the insurer.

In June this year, it was reported that the company was planning to lay off thousands of its employees in order to cut down costs.

In July, Allstate agreed to purchase National General in a cash deal valued around $4 bn, or $34.50 per share.