Thread regarding Allstate Corp. layoffs

Offshoring jobs is going to backfire on this company when America start looking out for Americans again. I can just imagine commercials by American based insurance companies (Progressive???) showing that not only are their rates low and affordable but they hire American workers unlike other companies. Besides the worker backlash is likely to hit before Transformational Growth gets far enough. People are leaving and retaining. both new and experienced workers will be their demise.

Mario has his head so far up Tommy Boy's A$$ he can see daylight. " I agree with Tom...." You better you wimp.

If you read the transcript of the Q4 2021 conference call, it does not bode well for future layoffs...key words: "expense reduction program", "using digital processes", "getting rid of extra labor", "focus on permanent cost reduction", "permanently taking out operating and distribution costs out of the system", etc., etc. You think the pressure from last year was bad.....? You all haven't seen nothin' yet.

The transformation, if ever successful, will take another decade. The competition is innovating, outsourcing, offshoring, and digitizing simultaneously and perhaps more effectively. Wilson's failed leadership in ceding the online/direct segment to Progressive and Geico, and completely missing the reach and profitability of the IA market are examples of starting too late. Better late than never, but a much more difficult path than they admit. Impressive new application numbers in the quarterly report, but excluding acquisition of National General, where is the organic growth from direct and the high growth low cost agency model? And auto retention dropped 50 basis points from 2020 levels.

I was wondering what the news from the earnings call was. I imagine Tom and the team had their tap dancing shoes shiny and their tu-d polishing cloths ready.

Yes, Allstate does need to adapt to survive, but:

• They started to late
• They don't know what they're doing
• It takes them way too long to implement change
• Everybody is either updating their resumes or hunkered down until they retire. This includes VPs and Directors.
• Nobody believes in leadership's "vision", or really understands it.

Sears2.0

This is exactly what this company needs to be doing to better compete. The entire industry is going in that direction. It is simply a choice of adapt or fail.

No surprise…..

Sounds about right, as the leaders I work with keep asking the same things:

• Can this be automated?
• Can this be off-shored?

It is clear that they are looking to automate everything possible, which will of course lead to layoffs, as will off-shoring which is corporate speak for sending jobs to India and/or anywhere else in the world where you can pay someone a fraction of what you'd pay an on-shore (American) employee.