In a move that reflects broader industry challenges, GEICO, a prominent insurance company, is set to trim its workforce by 6 percent, translating to 2,000 job cuts nationwide. Among the casualties, the Marlton corporate office will see a significant reduction in its workforce, with 93 employees slated for layoffs.
The layoffs in Marlton are scheduled to take effect on January 17, as indicated in a WARN Notice released by the New Jersey Department of Labor.
In a company-wide memo issued last week to announce these workforce adjustments, GEICO’s CEO Todd Combs acknowledged the recent industry challenges, characterizing the past few years as “a very difficult period.”
Factors contributing to these challenges include inflation rates not witnessed in decades, disruptions in the supply chain with delays in parts and labor, escalating medical costs, and various other elements. These issues have collectively driven up loss costs and combined ratios not just for GEICO but for the entire insurance industry.
Employees affected by these changes were promptly notified on the same day the memo was released.
It remains uncertain if other GEICO employees in New Jersey will be affected by these workforce reductions. As of Wednesday, the state’s labor department has not posted any additional WARN Notices related to GEICO.
For those seeking the Marlton office’s location, it can be found at 8000 Lincoln Dr. E.
GEICO’s decision to reduce its workforce reflects the broader insurance landscape’s evolving dynamics. As the industry grapples with various challenges, it’s increasingly important for companies to adapt and make strategic adjustments to remain competitive.
