Insurtech Lemonade has laid off 60 Metromile employees immediately after it closed the acquisition of the car insurance provider, according to multiple reports.
The US-based insurtech closed its previously announced acquisition of Metromile last week for more than $155m in cash and more than $110m in premiums in return for $145m in stock.
“Most Metromile employees will transition to roles at Lemonade,” Lemonade had stated in its press release announcing the close of the acquisition.
The job cuts, which affected 20% of Metromile workforce, include staff across recruiting, product, engineering and communications departments.
Metromile CFO Regi Vangalil and senior vice president of communication Debra Jack are said to include in the list of Metromile employees whose jobs have been sacked.
Lemonade spokesperson in a statement issued to Forbes: “We’re thrilled that we’ve finalised our acquisition of Metromile, and that we’ve been able to offer a role at Lemonade to about 80% of the Metromile team.
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“The combined entity is better than the sum of its parts, and can operate with fewer people than were needed to staff the two standalone.”
Founded in 2015, Lemonade initially provided property insurance. The firm aims to expand into the car coverage segment with the acquisition of Metromile.
Metromile data science technology and telematics sensors to provide pay-per-mile auto insurance plans.
In 2020, US-based auto insurer Allstate revealed plans to cut 3,800 jobs as part of its multi-year transformative growth plan.
Allstate said at the time that its transformative growth plan was aimed at strengthening personal property-liability market share by broadening customer access, enhancing customer value and investing in marketing and technology.