Hello, my team discussed today exactly who would be laid off. We didn’t get any specifics, but one question was is it Allstate employees or employees in the Allstate brand (Esurance, etc).
With Allstate cutting Esurance, i can see a lot of their claims adjusters and business personal being laid off. I wonder if they were factored into this magical 3,700 number we are seeing on here.
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I am retired from Allstate 7 years. I suspect the lag in the announcement of layoffs and the execution of the plan was to give upper management a chance to throw in for a golden parachute. it will be a difficult situation for many but rest assured those on the inside will be taken care of.
I would be surprised if they let go of Esurance employees. It's been non stop back to back calls most of the time, very busy.
CEO Tom Wilson is the problem. He made many changes to add to his pocket !
What I know is just a little. No idea on how many employees. Allstate and Esurance employees are on equal playing ground. They will take the best of both which makes sense. Encompass will have the entire AIA channel eventually. There will be no IA Allstate contracts and yes they could be in the same city. Price difference? Probably depending on commission but havent heard that has been hashed out. I am guessing different today.
What happens with the Encompass Brand? They weren’t even mentioned.
AIA merging with Encompass as part of transformative growth, keeping Encompass name from what Ron has said. Will be white label allstate products is my assumption at higher cost than EA
Is there anything to the rumor Allstate is going to turn all Independent Agent contracts (Encompass etc) into an Allstate Independent contract? I know they have been giving out (silent) Allstate IA appointments in Urban markets that compete directly with EA's and doing it rather furtive in some cases using IA cluster groups. If they continue the trend I'd think Encompass is going away the same as Esurance in a further consolidation and streamlining of the brand. Thoughts?
I can assure you Encompass and Answer employees are also at risk.
Interesting that there is been no discussion on the Encompass Brand.
Esurance would be a great place to start! Your a fool!!! Esurance does things so much faster than Allstate! Not to mention Allstate wants to complete claims, sales & new direct line just like Esurance does. I hear they will choose the best candidate for that position from both Allstate & Esurance employee’s...
Also look who is the new claims chief officers is!!! Big reason behind that move. It’s not rocket science! May the best employee get the positions. Good luck...
Esurance would be great place to start. They have lost millions of dollars and have never turned a profit.
To the individual that says no need to keep employees who can not perform or meet the company numbers....wow! Are you truly that blind and insensitive? In sales huge rate increases while competitors take huge rate decreases can greatly affect your PDS and that is not anything an employee can handle. Is it possible that a company could establish PDS goals that are not attainable to reduce the fat at no fault of the employee? Your comment is absolutely ridiculous. This is a huge layoff in times when individuals are hurting. Many have spouses that are employed here as well so an entire household could experience severe financial issues. In addition, people were passionate about the company and their jobs. Look at the average number of years an individual has worked here. Unless you are a Sr ranking official in HO you are not safe regardless of your PDS. Be mindful of your accusations as individuals are scared and hurting. Remember, 43% of Americans had less than $400 set aside prior to the pandemic according to Wilson. Now is the time to make sure we help those individuals out with the lowest cost auto insurance (which will never be able to achieve and maintain) while adding thousands more in the mix of individuals who will experience a financial hardship.
I hope my tw@t of a middle manager gets laid off. And subsequently her precious Audi repossessed.
Looks like its time to cut the fat off again. No sense to keep employees who can not perform & meet the company numbers. If your paid to do a job, it’s best to do it & at least meet the company standard for that position. If not your getting cut & cant blame anyone else but yourself for not meeting your job performance.....
I retired from Allstate a few years ago due to some health issues and it was time. I still have many friends left in Claims and visited often (before the world closed). I feel terrible that this is happening to everyone in what I remember was once an ok job made bearable by the people I worked with. I hope everyone makes it through this and lands or stays in a better place. As for upper mgmt, not so much.
Esurance associate here, so I can share what's been communicated to us.
A few notes about Esurance:
1) Even though the Esurance brand is going away, the product is still being used to write some customers that Allstate won't accept (which are actually a decent chunk of the overall market). There is also a $2B renewal book that will require some people to maintain. In particular, our large CA book will need to remain legally separate from Allstate due to regulations, so at least some staff will need to be maintained to run that. Also, a good number of our people with knowledge of the direct space are being leveraged in the move to writing direct business in the Allstate brand.
2) Esurance only has 3100 employees, so if this 3700 number that's floating around has any credence, even if 100% of us were laid off, some number of Allstate employees would be leaving to.
3) Esurance actually runs a pretty low expense-ratio business, aside from marketing, which it has had to out-spend on to compete with much larger competitors. With the marketing spend going away, the existing expenses are fairly competitive. It's the Allstate business that has high general expenses that could be improved by staffing reductions.
3) We've been going through a complicated process over the past few months to be "re-badged" as Allstate employees. If they were just going to lay off Esurance employees, or lay off a majority of us, it would have been a much more efficient use of time to do that before "converting" us to Allstaters. We have all received our new job titles and placement within the greater Allstate organization this past week, and will be officially rebadged by the end of the month.
Now to what we've been told:
1) Esurance employees are "not exempt" from the Allstate layoffs, and these layoffs will impact all areas, job levels, departments and brands
2) Effort is being made to make sure Esurance employees are treated "fairly" in this process (i.e. so that there is no implicit bias to laying off Esurance vs Allstate or vice versa)
TLDR; As an Esurance employee I absolutely fear being laid off, but I don't expect the Esurance brand employees to be the primary group impacted.
Yeah, not sure where you’re team thinks it can discuss or figure out what jobs are on the block.. in my 36 years with the company I’ve been through some not giant rif’s , office closings , but never anything to this degree...I think all bets are off... my job in claims is very customer centric and not redundant... what does that even mean? Redundant? The people who review files that my csl has already reviewed seem pretty redundant to me, but who am I to say?
They "needed to save $2 Billion this year, eh?
Hilarious.
They just reauthorized $3 billion in share buybacks in MAY 2020!!!!
The ghouls at the top (led by Wilson and his ridiculous toupee) are laughing all the way to the bank since they are all paid in stock, while the low-earners are kicked to the curb.
AWFUL, AWFUL STUFF
The targeted expense reduction for 2020 that was made public in 4th QTR 2019 was 2B in cost reduction in 2020.
3700 employees making 100k is $370,000,0000 which would leave 1.5B to go approximately; the real estate does not cost that much.
I am not certain where the 3700 figure has come from, but I would be shocked if the figure is not closer to 10k employees.
I’m not sure why everyone is surprised with this announcement — when Transformative Growth was announced in December senior leadership said they were looking to cut over $1B in costs. Everyone knows you can only accomplish this $1B in cost reductions by reducing head count...with a lot of job losses resulting from combining certain businesses (I.e Essurance). I knew it. My team knew it. We all knew it.
Tom never mentioned an exact number other than a single reference to “thousands”. So not sure where this 3,700 number is coming from.
And whoever thinks that all Essurance employees are on the block doesn’t really understand how RIFs for redundant positions works. It’s Darwinism at its finest, let the best worker win. It’s a true competition.
I have no idea if my job is safe. I hope so. But my boss made it very clear no one is safe, cuts are going to be broad and at every level. My position is not redundant with any others being combined but still not sleeping well at night.
I don’t believe all Esurance. You realize Esurance handles claims faster, more economical, and higher inventory than Allstate. Esurance has an incredible combined ratio based on last year after a few years of losses and much better than Allstate. Also Allstate switching to mostly the way Esurance claims handling is done with processes slowly within a year. I believe it will mostly affect sales, underwriting and trickle into claims handlers. It also will probably include security, office personnel if they lower claim branch numbers and if work from home model worked out. Allstate is “comfortable” with how they work and change is needed.
So sorry you’re all having to go through this! I’m NOT a recruiter, but please know that GEICO is hiring. Yes, entry level - no comparison to the
Esurance ia not going away. It will be rebranded.