Thread regarding Allstate Corp. layoffs

Status Quo?

In 2020 the company shed staff in Dec, and prior to that cut tremendous operating costs precipitated by Covid: commercial square footage, utilities, insurance and security for physical spaces, phone lines, utilities, office supplies heck even paper : all cut. Then last year because of changes in grandfathered pensioners : dropped even MORE tenured labor liabilities which equated to mainly uour highest paid employees across the company. But its public knowledge that 341 million was lost in the first Quarter of 2023. The net worth of last three years/ TG /call it whatever like: it was a reflection of efficiencies, but business is clearly NOT being written, policies arent being sold.

I cant separate truth from BS on this board but it makes sense that the company will have to entertain another “reorg” or rightsizing or offshoring or whatever you want to call it because there is nothing left to cut but more labor.

I dont know anything about Concentrix or other rumors but the idea certainly seems to make sense, or some variation of it.

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| 1841 views | | 1 reply (July 6, 2023) | Reply
Post ID: @OP+1nj9U8YC

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The goal is to restore Auto profitability. TG is geared toward delivering a digital experience to entice prospective buyers to purchase a policy. Given the perfect completion environment in the industry and the ease of substituting companies, why wouldn't a prospective buyer buy a cheaper policy from Progressive for the same coverage limits? Allstate's cost structure is too high. They attempt to offset the high cost of TG via layoffs. That will not work as you can't lay off a sufficient number of people to reduce costs to balance the cost part of the auto equation. It is a death spiral and we are observing the death of a great company. After a couple more years of auto losses, the balance sheet is really in trouble...Major changes will occur after year-end 2023. TG will need to stop to halt the bleeding of capital.

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Post ID: @arxw+1nj9U8YC

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