https://www.wsws.org/en/articles/2007/03/circ-m30.html
Circuit City fired thousands of employees, opting to cut tenured and longterm workers to avoid paying their higher salaries, and the top execs got their bonuses for all the money they saved the company. Customer service tanked, employee moral suffered, and eventually the business closed.
I think Allstate will follow suit, unless they get rid of current leaders. It's just a matter of time before customers move on to a new competitor.
Just a quick add on to the original post. I was a loyal Directv customer for years. The customer service that was based in the U.S. was outstanding. They were purchased by AT&T and the customer service was shipped off shore to India. The level of my satisfaction dropped off the charts. Between the individuals not answering me intelligently and the staff constantly rejecting my requests to speak to supervisor, it wasn't too long that I dropped their service. Now today Directv has hemorrhaged customers to the tune of 3 million in just 2020. Just a warning for the geniuses at Allstate.
Glenn, Tom, look at their bonuses for 2020. The will keep cutting costs, stock will keep going up, and no policies are being sold and customer service, claims, are all going in the $hitter. Stupid adverts that they produce in-house now what a waste of money that is. The producers are pi---d, there is no plan for growth. They have audacity to say "costs are too high" and ask the struggling workers to donate their own money in the companies name!:
https://www1.salary.com/ALLSTATE-CORP-Executive-Salaries.html
Rich and greedy no excuse. They will parachute out and move onto next company like locusts , but boy do they get rich while us prole "grunts" struggle to eek out a retirement and G forbid you have medical costs. Allstate "management" is an embarrassment and the company has become a horrible mess.
Customers expect good service and low prices. Now they have bad service and the same prices. Too many “yes men” in leadership on high which was consolidated under the new structure to make sure the marching orders are followed. I think Allstate needs to hire a few executives that disagree with them instead of just robots. Fire experienced + no training + hire inexperienced at lower pay level + people in power don’t question each other + only has 100,000 foot view of how insurance actually works + anger all employees and sales force = probably not success. Seriously, how are these guys still at the helm? The article is surprisingly close to Allstate.
I agree with the original post. We were the #1 STOCK insurance company until TW took the helm. The only thing he has reinvented is dissatisfaction across-the-board. Soon we will rejoice at being #7.
Boomer,circuit city failed because they failed to keep up with retail box store best buy and online realtors.