Thread regarding Allstate Corp. layoffs

@hjhp+12AfuWXC

Those are some pretty impressive degrees that you have. Have you ever sold 1 insurance policy ever? I think not. You are the type of person that charms a room by leaving it. Allstate is top heave because of mo–n department heads like yourself. Allstate Insurance are most expensive products on the street. Morover, they are not the best either:

https://www.jdpower.com/business/press-releases/2019-us-auto-insurance-study

@hjhp+12AfuWXC how much of your own money did you invest to become a employee of Allstate. I have invested over a million dollars only to be lied to about compensation, quality of products, and a company that is not concerned about growing. You can only hide behind your stock buy back so much before you have to make this behemoth move and show some growth.

Don't get me wrong, you are the coolest guy the world with all of those impressive degrees. However, you probably could not sell an Allstate Insurance Policy if your life depended on it. Moreover, you lack the skills to point an Allstate customer to the toilet let alone run a department. Good luck to you in your job search, because your job is going away.

My guess is, if there is any potential reduction in employees, they will complete an assessment based on performance. But remember, they need people to handle the claims.

Let’s hope that Allstate offers all the esurance employees a position at Allstate.

My undergraduate degree was finance, with a double major in strategic marketing. I completed my MBA in 2 years. I have an Executive Certificate from Keller School of Business. Any more questions, genius. You need to learn how to compose a sentence before questioning someone else’s credentials.
And yes, I have a little “business sense”, since I ran several large organizations within this company, and others. Shareholders invest in company’s stock in expectation of an above average return. They don’t make day to day decisions. If management makes day to day decisions that support a healthy share value, that’s called being a “publicly traded company”. They shouldn’t make short term decisions that drive the short term growth of the stock, but that’s why there’s a Board of Directors, to represent the shareholders.
Apparently, these concepts are beyond your comprehension, and I don’t think it has anything to do with your inferior education. But, try to learn.

@12AfuWXC-8nbi

Yes they will run into ground do u have any business sense or did you major in psych or journalism communications or art history? They are not vested beyond stock options and with puts calls driving ratio into ground short term still allows golden parachute and huge profits. The apologists on this site are free enterprise r—ds and nothing they do is illegal u are correct. But Allstate is in decline and writing on wall get out how or wait for severance and then compete with all your coworkers for a job. Have fun!

They are eliminating the Esurance brand. That means they’ll re-brand Esurance as something under the Allstate brand, but it doesn’t mean they plan on losing all those policies/premium, nor will they stop selling “direct” insurance (in fact, it may increase). Because they’re going to combine the claim organizations (Allstate, Esurance, Encompass), they will realize efficiency gains, meaning get rid of the redundant real estate and people. There are places around the country with an Esurance Claim location just down the street (in some cases up the stairs) from an Allstate location. It’s never made sense, and is long overdue.

Any idea what will happen to the esurance employees?

The stock is not soaring because of “budgetary cuts”. Any reductions haven’t moved the needle on the expense ratio, which remains the highest in the peer group company’s. Investors and analysts could care less about a couple of hundred job consolidations or layoffs. We could save $10 million in claim salaries and it wouldn’t move the expense ratio a decimal.
The new model will impact future agent commissions (more direct sales/fewer agent sales), and that will impact the expense ratio, making the product more competitively priced. Which will translate to increased market share.
You, and people like you have been predicting the demise of the company for the past 3 years, as the stock goes to new highs ! By the way, when it does reverse the trend (it will) I’ll already have my sell orders in !!

The reason the stock is soaring is because of massive budgetary cuts you geniuses. The bigger problem is we continue to drop in market share behind SF Geico and Progressive. The books will look great for a year or so but the change in agent commissions for retained vs new business was done as one example of our slipping market share/lack growth vs only renewals. So everyone who thinks the strategic planning is so brillant give it couple years—-this dinosaur is most definitely being run into ground and we will/have reached point diminishing returns and the execs will parachute out to their next Corp wrecking job on their options. Bitter guy is dead on and rose colored glasses cool aid drinkers are ignorant and out of touch.

@bcdh
One final time; shareholders do not “make cuts”. They invest, or divest in the company. The are not “greedy” because they want a good return on their investment. If there isn’t a good return, they’ll sell the stock and invest elsewhere. If that happens enough, the company shrinks, and employees are laid off.
Re: the California litigation, or “suite” as you put it. Allstate was not in violation of regulations. There was a suit challenging the non-exempt status of claim employees. The courts agreed with the plaintiff that these jobs are exempt. It was not a “violation “. Allstate was paying employees in accordance with the law. In all other 49 states, employees are still treated as exempt. As a result of California’s stance on this issue, all California supporting jobs were re-located to Arizona.
No, they’re not going to cut “exec and CEO pay”. If you’re not competitive on Senior Executive pay, they’ll go elsewhere. There is fierce competition for Senior Executive talent, and you get what you pay for.
You live in a world that’s not based in reality. What’s worse, you seem incapable of understanding the real world.

@12AfuWXC-aaeb
You are so right about the shareholders voting with there wallets! If there wallet size does not increase, they make cuts. Many times those cuts do not benifit the company or the product! Why not cut execs & CEO salary! Looks like more jobs are going overseas. When customers have to deal with overseas reps, let’s see how many stay with Allstate! Stock is at a high today, but may not be tomorrow. Allstate talks a big talk about ethics, but it’s nothing but talk, none of it is practiced! It’s sad to see loyal American employees lose there jobs to overseas people. Looks like an other reason for Allstate not to comply with state labor laws. Let’s not forget the large class action suite in CA!!!! Hopefully the loyal employees all find employment. I’m sure they will not get a severance package, due to greedy shareholders needing a bigger wallet!!

Personal insults are not allowed here. Just saying.

This ignorant rant shouldn’t warrant a response, but I can’t help myself.
“The company is headed down hill quick !”- The stock traded at close to all time highs this week, and outperformed both the Dow and S &P in the last 6 months of the year.
“Shareholders only care about profit and more profit !”- Brilliant! You’re a genius. You finally get it !
“They (shareholders) have run (sic) many other traded companies into the ground !”- Shareholders don’t “run” anything, anywhere. They vote with their wallets. If a company performs well and is a good value, they invest. When either of those things cease to be true, they divest. If divesting causes the company to fail, its management and employees that “run it into the ground”.
Your ignorance of simple market dynamics gives me a headache. Go away BitterGuy.

“Shareholders could care less about the end product !”. Stupid statement. Let’s go through this one more time. Shareholders invest in a company in anticipation of stock price increase and dividends. If the end product is bad, people will stop buying it. If people stop buying it, revenue and profits will decline. If revenue and profits decline, stock price drops, and dividends decrease. Are you still with me ? That means, shareholders care about the quality of a product or service if they’ve invested in the company. Got it ?

Out sourcing jobs overseas is a horrible issue. They will compromise customer service to cut wages & avoide following state labor laws, just for more profit. Shareholders could care less about the end product, they only care about profit & more profit. Better get your resume ready. Lots of jobs will be cut!!!!!

#1) I don’t believe you’re a customer, for a minute.
#2) Allstate has not announced that any customer facing jobs are “going over to India”. And if your issue is doing business with a company that has back office support functions in India, good luck finding a credit card or any financial service !!

I’m a current customer with Allstate. Auto, home, life & business insurance. I will be changing carriers. I do not want to speak with someone overseas. I agree with 8okk. Shareholder & execs are very greedy. Really who wants to speak to someone in India!! Allstate will lose many more customers!!

I’m sincerely hoping that poster (8okk) isn’t an employee, or at least one that’s required to communicate with customers. If he or she is, we’re all in trouble.

Yes. Shareholders are “greedy”. They don’t buy the stock to take care of the employees. They don’t buy the stock to be nice. They buy the stock in anticipation it will increase in value and pay dividends. Current management has served the shareholder well, as the stock is trading at close to all time highs.
Thank you !!!!!
Signed,
Greedy Shareholder

The only thing greedy share holders care about is the amount of profit. Most will run a company to the ground, just along as the keep making more money. Every year they need more & more. That’s greed. Let’s cut more jobs in the states & use overseas employees so more cost can be cut & more profit for the greedy share holders & execs. They will use overseas employees to avoid state laws, let’s not forgot about the difference in wages. Look at the big picture, cheaper labor, no state laws to follow, more profit. These decisions are based on “how much more can the company profit.” Can’t wait til millions of Americans switch carriers based on using overseas employees!

If the question is, will they keep the brand, I think the answer is yes. Esurance/Allstate policies and customer profile are very similar, but Encompass policy and customer profile are significantly different, so I would think they’ll maintain the brand (for now). That said, it’s not a profitable business, and it hasn’t been for a long time. The claim organizations and back room processing functions (non-customer facing) will merge, and realize efficiency gains.

They will be phasing out Esurance, will Encompass merge with Allstate or will they just phase that out also?

Let me add to this id–tic conversation. Let’s say you cut the CEO’s pay by a third.....$6m. In theory, you could fund 100 jobs OUT OF OVER 30,0000 employees !! And, because you didn’t make the difficult decisions you should have to run the business in an efficient manner, the company still has the highest expense ratio in the industry, it continues to lose market share, and shrinks to the point that more restructuring and layoffs are necessary. Again.
The answer to this problem isn’t “cut executive pay to save jobs !”. It doesn’t solve the underlying business problem. I don’t expect you to understand this, but if you can’t comprehend the challenges facing this company, you shouldn’t comment.

Tom Wilson earns approximately $17m (full package), which is the 2nd highest among publicly traded companies. Allstate also has the 2nd highest premium level of publicly traded companies. He also holds the Chairman of the Board role, so the $17m is for 2 jobs.
Comparing to the “national average” is meaningless.The fair comparison is to his peer group, top 10 publicly traded insurers. Do your homework, or zip it.

You are wrong. If you had the ability or inclination to read and understand, the Board of Directors, and by extension, the Compensation Committee, approves the Senior Leadership team salary structure, bonus criteria, and equity (stock option) distribution. The bonus is based on objective, measurable criteria. They make the business goals, they get paid.
You pay senior leadership, or you don’t attract talent. Period.

Greed will alway cloud decision making.

I’m sure none of the execs, directors or The CEO will have there salary’s reviewed. The CEO of Allstate is paid $17 million a year & the all get very large bounes. Why not start at the top resturce salary. Most of them are paid more than 3 times the national average. They will cut jobs, many loyal employees will be let go.

Yes, of course. Shareholders and directors, who depend on the success of the company will “ run it into the ground”. Do you even listen to, or read what you post here ?

We all know that shareholders & directors don’t care about any employees. They will run a company to the ground and fire everyone as long as the will make more money. It’s sad but very true.

The CEO is also the Chairman. Two jobs. Even if his salary was half of what it is, Senior Leadership would/should make the same decision for the business, meaning consolidation of the separate business entities, efficiency gains, and the need for fewer people.
And yes, I am a shareholder. The people that pay the bills at publicly traded companies. Shareholders are not “greedy” when they invest in the company, and expect a return. When I was an employee, I knew that.

The poster below must be a shareholder or director. Look at the big picture! It’s greed.. Why not start with salary restucture. Let’s start with the CEO, $12 million a year. That’s more than twice the national average. At the end Allstate talks a lot about there core values & ethics but none of it is practiced! Greedy shareholders & CEO!!

When you’re dealing with a publicly held company, it’s not “greed”, it’s making decisions in the best interests of the people who own the company, the shareholders. Unfortunately, sometimes the decisions that are best for the shareholders aren’t best for the employees. Shareholders win.

It’s sad that greed will always over come the better decisions.

"Not surprised. Allstate closed down big centers in Cali. Cutting costs to make their shareholders richer."

Allstate pulled out of Cali because of too much legal liability. The state is simply too litigious and after losing at least one large class action lawsuit, the company decided they'd had enough. It's simply not profitable to conduct business there.

They are many was to restructure a company & budget. One of the best ways is to start at the top and work down! Allstate has always made a profit, but now it’s just not enough for the greedy shareholders who always want more, even if it means eliminating many loyal employees!! You are the one missing it and not seeing the big picture! It’s time to look for a better employer, who’s ethics are not just spoken of & actually practiced.

It’s not all that matters, but you miss the point that if there’s no business, there are no employees. If the business is shrinking, there are fewer employees. If changes aren’t made, both, or either are inevitable. I’m not a Director, I’m a shareholder, and ex-employee. Re: executive compensation and bonuses, there is a compensation committee on the board. It’s their responsibility to bonuses are in line with company results, and competitive with the industry. If they’re not, you lose talent. No different than front line employees. It’s naive to say “cut Senior Leadership bonuses to save jobs”.
It’s unfortunate, but a fact of life. If you don’t like it, you should work at a mutual company that doesn’t have shareholders.

That’s a stupid response. This is a publicly traded company, which means the shareholders are the owners. If consolidating operations is the best decision for the business, leadership has an obligation to the shareholders. The consolidation will result in some efficiency gains, but they still need employees to run those businesses, so while they’ll need fewer, most will retain jobs. You need to care for and respect your employees, to the extent the business is still viable. If you run it into the ground because leadership doesn’t make the necessary changes, no employees have jobs.

Looks like many of the esurance & encompass staff will be losing there jobs! So much for company ethics & taking care of employees.

They are shutting down Encompass as well. Crazy to think Independent Agents would ever embrace insurance policies underwritten by Allstate!

Not surprised. Allstate closed down big centers in Cali. Cutting costs to make their shareholders richer.