American property insurance company Hippo Holdings has laid off about 70 employees, which represents or 10% of its overall workforce, to focus on the strategic priorities and increase efficiency.
The involuntary workforce reduction, which was announced in 8-K filings with the Securities and Exchange Commission, forms part of the Palo Alto, California-based insurtech’s ‘organisational realignment’.
Hippo said that the staff cuts are effective 01 September 2022 and the affected employees received one day of notice on 31 August 2022.
As a result of these actions, the insurance firm anticipates record charges ranging between $1.8m and $2m for the 3Q 2022 for severance, benefits, and related costs.
In the filing, the firm said: “The Company is continuing to review the potential impact of the reduction, including facility lease exits and additional employee related costs, and is unable to estimate any additional restructuring costs or charges at this time.
“If the Company subsequently determines that it will incur additional material restructuring costs or charges, it will amend this Current Report on Form 8-K with respect to such determination.”
Furthermore, in another filing, Hippo reported that its chief operating officer and chief technology officer Ran Harpaz will be exiting the company on 15 November 2022.
Earlier this year, Hippo Insurance acquired SwingDev, a tech-enabled software development company.
Last year, Hippo launched Builders Program to help streamline the home purchase process and deliver home insurance directly to buyers of new homes.