Thread regarding Allstate Corp. layoffs

What current layoffs entail

Good Morning. I can speak out on the who, when, and hows of current layoff plans. I cannot reveal my position or area for obvious reasons.

Currently and starting this past summer plans were presented to agency, customer, and tech areas for cost savings goals for each area. It was determined that waste and excess costs in all areas exceeded that of the industry. It was determined that each area would be given an operations cost number and it was made the responsibility of each area to get within that operating cost per area in the ways they saw fit. In addition the cost of vendor and third party services were provided for each area that their functions and operations could be placed as found seen as a fit. We left it in the hands of senior leaders in each area to present their business cases for approvals. We also provided areas in need to transfer bodies if needed for retention in other departments. Each business case for each area would be presented and approved if acceptable. At this point all requested areas have presented their business cases for where they have retained, rebadged, and released.

Business cases were to be finalized by end of 2022 for the initially selected areas for review. Vendor contracts and legal revisions for employee contracts were delayed meaning approvals for business cases were delayed. We will have business cases for each area approved by end of first quarter 2023 and bodies fates will be determined and souls transferred, retained, or released as approved.

We can say that many more transfers to other company areas and rebading to vendors will take place than releases as of course severance pay is a cost that needs to be monitored and less that previous as well.

The current areas will be decided by end of first quarter which times well with completion of vendor's trainings for these roles being replaced. All areas will be provided similar cost goals and required to provide their business cases for approvals. Vendors will be utilized in all areas of the company and vendors are also licensed for on shore roles in all areas. All areas will complete this process by end of 2023. If your area has not been impacted yet for review in 2022 it will be in 2023. Agencies themselves ard a part of the process.

There is no set number of souls onshore to be retained as part of this process of our ongoing Transformative Growth however internally at the end of this phase we anticipate our total onshore corporate employee footprint to be around 20,000 souls by mid 2024.

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| 4151 views | | 16 replies (last December 23, 2022) | Reply
Post ID: @OP+1kdrELUG

16 replies (most recent on top)

Wilson has to go.

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Post ID: @7bcc+1kdrELUG

Would losing an admin asst salary really help Allstate???? 🤔

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Post ID: @4uyp+1kdrELUG

Our leaders shared with us a year ago that we had to cut 10% or something (can't remember) in 2022 based on mandate given. Marketing has it easy, they can literally just not air a commercial or two and save millions. I/T doesn't make money and so we had to cut contractors and now have moved onto employees and moving more to offshore. The market is great and so if the time comes, I'll take the severance and move on. NatGen is moving Legal, Real Estate & Health/Benefits to Allstate soon, but other areas like Encompass & Esurance are moving from Allstate to NatGen, so who knows the future, but I think NatGen will remain a separate entity. There were a lot of Senior level people offered packages that will be gone in a couple weeks. 15 Executive Admins let go as well. Plus, the interest rates that affected the old pension plan people has pushed a lot of people out. I think come January 1st, they need to see who's left and it won't be the people who had all the knowledge necessarily. But, change is the only constant.....again.....

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Post ID: @4bbs+1kdrELUG

This is a clown show and has been since they sent out the non disclosure letters whenever it was, 2018 or so. Employees and customers should flee from this mess.

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Post ID: @3tqj+1kdrELUG

The good news is that Allstate customers can walk and many are.
The business plan of customers and potential customers is to stay as far away from this circus show as possible…

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Post ID: @3izy+1kdrELUG

op is pretty much spot on. The plan is to have at least half and if possible more of the U.S. based Allstate employment off shored or vendored out by 2024. Areas not impacted and assessed now will certainly be in 2023.

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Post ID: @1aig+1kdrELUG

It all starts at the top with the greedy Chicago CEO. We all know what side of the political spectrum the CEO is on….. Yep he is proud of his blue hat. Tom is also the biggest contributor to the Chicago Sc-m DÑC.. He will be even happier when 90% of the workforce is overseas…….

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Post ID: @1suo+1kdrELUG

“Layoffs do not solve what is often the underlying problem, which is often an ineffective strategy, a loss of market share, or too little revenue. Layoffs are basically a bad decision.”

Check out research by Stanford University.

https://www.futurity.org/tech-industry-layoffs-2844882-2/

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Post ID: @1izn+1kdrELUG

OP is giving pretty accurate info. My leader has been meeting with Sr. leadership for at least 3 month. Leadership was to present a plan for what the team’s responsibilities were and really try to word it in a way so that the work did not appear redundant. Whoever is reviewing this info is going through the plans with a fine tooth comb. The end goal is absolutely to cut as many US Allstate employees as possible.

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Post ID: @1hdj+1kdrELUG

My question is… What about National General? Will NatGen still be business as usual?? Will they still be a separate entity?? Will Allstate look over the large amount of field auto tech & very large dept of virtual auto techs?? Will they start with unlicensed states going to Pune also?? Anyone have any inside????

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Post ID: @bfa+1kdrELUG

God bless the person that is TRULY being transparent and perhaps they are referring to the word SOUL because they have one...these are peoples lives here and folks are literally In the dark...wrong wrong wrong.

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Post ID: @zuf+1kdrELUG

What really has the ring of truth here is that senior leaders were given a deadline and missed it, pushing it back another quarter.

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Post ID: @nis+1kdrELUG

I agree with previous post.

This company is full of lifers who milk the company and have convinced all the other lifers what a hard day of work looks like.

Total joke how little is done at this shitshow

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Post ID: @bgo+1kdrELUG

Just think of all the work the OP could have done instead of rewriting War and Peace. It f half of you would do half the work that is expected, our company wouldn’t have to look elsewhere. You all are a joke

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Post ID: @wzh+1kdrELUG

Thank you for your honesty and bravery. My question is once we go to the vendor, do you know if the vendor really wants to keep us long term or just temporarily and lay us off so they can hire cheaper workers in their country?

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Post ID: @eic+1kdrELUG

any updates on rmbc layoffs? number of souls and how they are choosing who is retained? We were told end of year we should find out but still have heard nothing.

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Post ID: @xnj+1kdrELUG

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