New York
CNN
—
California-based Farmers Insurance said Monday it is laying off 11% of its workforce — or 2,400 employees — in a bid to restructure itself for long-term growth.
The jobs being cut are from across all areas of the company, according to a statement on its website.
“Given the existing conditions of the insurance industry and the impact they are having on our business, we need to take decisive actions today to better position Farmers for future success,” said Raul Vargas, president and CEO of Farmers Group, Inc,. in the statement.
Last month, Farmers announced it would stop offering its policies in Florida, saying in a statement that the decision was necessary to manage its risk exposure in the hurricane-prone state.
Farmers has also limited new homeowners insurance policies in California because of high costs and wildfire risks. State Farm and Allstate also made similar changes in that state.
The layoffs come after T-Mobile and CVS also announced thousands of job cuts this month, though the US labor market remains strong overall.
— CNN’s Jordan Valinsky contributed to this report.
