Thread regarding GEICO layoffs

Losses

GEICO had a pre-tax underwriting loss of nearly $1.9 billion in 2022 (the uw loss comes from property & other lines, not just auto).

Geico reported a $703 million underwriting profit for Q1 2023, after reporting a loss for six consecutive quarters (Note: the Q1 profits are the result of receiving approval from states to increase premiums and from scaling back advertising).

If I'm counting back correctly, six quarters from Q1 2023, would be Q2 2021; which means they didn't make a profit for about one and a half years, and in order to achieve profit for first quarter 2023, Geico had to resort to drastic measures (not advertising & premium increases). They've also been losing market share to Progressive.

In all actuality, if Geico were not a subsidiary of Berkshire Hathaway (and a favorite company of Warren Buffett), I think this layoff would've been even larger than it is.

Prayers for everyone impacted by the layoffs (including those that kept their jobs).

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| 1411 views | | 5 replies (last October 28, 2023) | Reply
Post ID: @OP+1pjj0zXf

5 replies (most recent on top)

It's been a little more than a year since I joined this company, and my coworkers kept saying it used to be great, but honestly, I'm not sure we're working at the same place 'cause for me, this place really sux. Has been like that from the day 1. I honestly wouldn't mind losing this job, specially if that meant someone else could dodge a bullet, but unfortunately, it doesn't work that way Anyhoo, I'm leaving this place just as soon as I land another job.

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Post ID: @cvm+1pjj0zXf

Well said! I worked there for almost 25 years and it’s brutal being on the front lines. The people that make the really impactful decisions rarely speak with customers.

The Front line agents have to deal with all the fallout from decisions made by others and they have zero control over those decisions.

If the company really has made an error, the d-mbest thing to do is to scream at the person that might be able to figure it out and get it fixed for you.

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Post ID: @vww+1pjj0zXf

As a previous G employee I understand your frustrations...rate increases, slow claim payments, just horrible experiences... please be kind to the poor person answering the phone, they didn't personally increase your rate, one of my prior coworkers was told to ki-l themselves by an irate customer - they considered it, we got yelled at, cussed at, put down for 8-10 hours a day... for me, I hated the way some things were done, but I couldn't change processes. And, this is going to sound ruder than intended... there are a ton of other insurance companies out there... before calling G and screaming at someone for doing their best, call and get a policy elsewhere

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Post ID: @fas+1pjj0zXf

They are making up for it by hiking up customer rates (I know only because everyone keeps texting me, asking why their rates went up.)

And laying off a few thousand employees that they desperately need. (I also keep getting messages asking on how to get an adjuster to call you back.)

I don’t think Berkshire is going to keep Geico around much longer.

My prediction from a outsider point of view.

I hope I’m wrong for all my friends who have worked there for years and decades.

This will also be a hard hit on the small town of Lakeland.

I can’t get over the way they have handled their employees.

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Post ID: @wlw+1pjj0zXf

25 Years ago on this very day, I sat in a room of strangers in a class called GEICO 101!

We sat there in our new clothes/shoes with excitement as they gave us the insight of what was to be expected of us, going over our benefits and telling us about what a great company we picked to grow our new career with! These people not only became my co-worker’s, they became my FAMILY!!

My ❤️ breaks for all GEICO employees, as they expect you all to sit there and still give an “A” experience not knowing if it’s going to be the last customer you talk to, or as you look over your shoulder after each beep praying that the box your manager is carrying is not yours! 🥹😥

But believe me there is life after GEICO!!!!! GOD was tugging at my neck over a year ago, I fault with him for a while until I couldn’t anymore, I never thought I would leave. GEICO was my livelihood, my bread and butter, my security blanket……

I brought it up to my management team and asked what’s going on?

Something doesn’t feel right, they said everything is good, we are growing stronger as a company, are you sure you want to put your 2 weeks in, just remember there’s no company in Middle Georgia that come close to GEICO. Think about what you’re doing! I simply answered, GOD has spoken and he told me it’s time, It was hard but I’m glad I listened! 2 weeks after my last day at GEICO, they started the Layoffs, and it hasn’t stopped……

SO GEICO PEEPS DON’T❓GOD, LISTEN TO HIM!!!! 🙏🏼 ITS TIME ✌🏼OUT 🦎‼️

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Post ID: @qnm+1pjj0zXf

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