Yet another quick decision to slash expense and increase company profits. The plan of merging and growth has been on the desk for a long time. With proper planning, the company could have avoided layoffs by natural process of retirement and voluntary terminations as the company already has a very high rate of turnover. At this economic time, the employees who will be laid off will most definitely sell all of their Allstate stock shares. That will be millions and will drive the cost per share even lower. Those employees who are currently insured by Allstate will also drop the policies. So that’s thousands of policies and thousands of mouths providing negative advertising. This is not Allstate’s goal is it? The goal is to grow and to grow you need proper staffing and lead the industry with quality service. This means not being understaffed with overworked employees and poor morale. Leaders making these decisions may feel neutral emotions as their positions are not on the chopping block....somehow.
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To you question about mowing the lawn. Would I choose my nephew to mow my lawn for $50 or the neighbor boy who will do it for less? That depends if the neighbor has tattoos or not like my nephew.
It seems many are misunderstanding these cuts.
These do not have anything to do with a lack of funds. When you have thousands of employees who’s jobs can be done by computers for much much less you do it. Centralizing the regions in a move that should have been done years ago makes sense. Allstate can prosper with this move. They can offer lower rates, gain more customers , have better expense ratios and drive the stocks that these people will sell for less all the way up! Hold your stock.
Also, claiming the ceo and other execs are paid millions and this is unfair is ridiculous. If 10 employees = $1mil (and this is at a low level mind you!) in what world would the ceo take a million dollar pay cut to save a couple jobs?
These closings are years of incremental improvements added up and now having action taken.
If you could pay your nephew $50 to mow the lawn but the neighbor boy will do it for $20 who do you choose?
If I were laid off in a pandemic I would probably do whatever was necessary to make ends meet. Usually that means dumping stock in a company I have little to no faith in.
I have worked for Allstate for close to 7 years and most likely will be shown the door.
I must disagree with your sentiment that their is a lack of leadership at Allstate. I am of the opinion that finally, leadership exists. It was extremely poor leadership to allow ALL to go from the #2 provider to not even in the top 10 while continuing to allow expensive and useless regions to exists providing little to no value to the agents and the customer.
Leadership, is understanding the company needs to be re-built from the ground up, removing billions in expenses, and finally driving premiums down. I get it, losing my job s—s. ALL easily has 10k or more employees doing jobs that are 100% completely unnecessary. The work may feel necessary because some frat boy RSL or regional FSVP requested it....take make himself feel better about something or other, but remove the entire region and guess what....agents will still write business. Turns out the RSL and FSVP weren't necessary.
I understand layoffs happen at all corporations, and for good reason. However, I am very disappointed. I attended the Town Halls and read the announcements. I did not detect anyone taking any responsibility. It appears most of the layoffs in claims will be coming from the desk or MCO levels. Does upper leadership not bear ANY responsibility for the company going from the #2 carrier to the #4 carrier? Why are layoffs being branded as “growth”? It’s insulting. I attended a town hall that appeared to be scripted/staged. It was a stiff meeting and the “recognition” they shoe horned in was ridiculous. What a terrible job all around. It’s a solid company and will continue to be so, however, the past few weeks hasn’t been a good showing of transparency or inspiring leadership.
Why would newly laid off people sell all their Allstate stock if they know that the company will be much more profitable moving forward? Seems like they would hold on to it.