Thread regarding AmTrust Financial Services Inc. layoffs

AmTrust lays off 100 IT employees in Cleveland

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| 9302 views | | 8 replies (last April 25, 2019)
Post ID: @OP+R5bDvym

8 replies (most recent on top)

I was laid off from AmTrust Las Vegas on April 3rd. I had noticed a very low output of tasks and responsibilities in the last six months. The work load had decreased up to 70 %! Anyone with smart wits, would acknowledge the fact that there is no need to have three people performing the job that one person can do. It’s not profitable. The company went from public to private, and it seemed not to be engaging into new account bids during the last six months. The writing was on the wall. The Severance Package included Health Insurance until months end, Lump Sun for two Months of COBRA, and 6.5 weeks of pay including unused PTO. I wish we were given a two or three months notice like in other offices, but we were told to leave that day. What is done is done, and I thing the tried to lighten the financial burden, however I did resent been rushed to take only a few personal things and to leave the office like I was some kind of criminal. It was a total stupid and ignorant assumption to even consider that laying off 25% was not going to create any disruption; it was going to happen anyway. The VP and her hench girl, were ruthless in that approach, and that is my only complaint.

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Post ID: @7Fcme+R5bDvym

It gets even better. In a management training session a couple months later, someone in IT was asking about how reviews would be handled because so many people were moved/gone. One of the HR reps joked, "Oh, have there been changes in your area?" and laughed. Yup, people losing their jobs is just hilarious. Glad the company cares.

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Post ID: @2tmav+R5bDvym

What a bunch of douche bags...... fraudulent, deceptive, misleading pigs! Mid level management across the board in every department worked diligently to fix internal errors while their hands were tied with no support and chastised as incompetent when bringing issues to these so called Corporate Yahoo’s! These thugs were scamming until Federal Reugulaters put a halt to it. The little guys are the ones that wind up paying for it and these bullies have the nerve to threaten and intimidate their own little ditch diggers while giving them the boot! Oh! and Ronald Pipoly! What hole did that little scamp crawl into? His first employer is the one who educated him on loopholes and “INCIDENTAL” Accounting Discrepancies. The Market Place is not what put these poor folks out of a job. The reason this whole company is imploding isnt just due to arrogant, hubris, and poor management but the fact that these guys have no moral character. How far would these greedy crooks have crossed the line if the SEC and FBI hadn’t been breathing down their necks? You’re a pretty young guy Ariel Gorelik. Have you already sold your soul too? You smug piece of filth.

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Post ID: @1cbum+R5bDvym

Actually you should not take this personally as we should all know by now that you cannot base you destiny on who you work for. During the time we were there we were compensated and some of us received severance if you were lucky to get it. During my time there I observed and read (public information) the various moves the company was making to enhance liquidity either by selling off parts of the company, software, etc.......either through cash transactions, or stock. Also, Amtrust

just rather be held as a private firm in that sense it does not have the reporting responsibilities as it does now to the SEC. Yes it hurts, but you have to pick up and move on.......also internally the management team "S---ED"....so do you really want to be there. There are tons of opportunity out there so just see this as a door closing however a door opening as well.......take care my friends and be well!

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Post ID: @adgc+R5bDvym

A press release was made yesterday that AmTrust is in negotiations to potentially become privately held. The press release can be found at this link:

https://www.businesswire.com/news/home/20180109006745/en/Stone-Point-Capital-Partners-CEO-AmTrust-Financial

This was announced to current employees in the following email:

SUBJECT

Update on Recent News Announcement

BODY

For internal use only. Communications to employees should not be shared externally.

Dear AmTrust team,

On Tuesday, January 9, AmTrust received a proposal from private equity firm Stone Point Capital LLC, together with Barry Zyskind, Chairman and CEO of AmTrust, George Karfunkel and Leah Karfunkel (collectively, the “Karfunkel-Zyskind Family”), to take AmTrust private. They have offered to acquire all of the outstanding shares of common stock of AmTrust that the Karfunkel-Zyskind Family does not already own or control for $12.25 per share in cash.

In a press release this morning, AmTrust announced that our board of directors has appointed a special committee composed of independent directors to consider the proposal, in consultation with an independent legal advisor.

AmTrust will not move forward with any transaction unless it is approved by the special committee. Any transaction would be subject to a non-waivable condition requiring the approval of a majority of the shares of the Company not owned or controlled by the Karfunkel-Zyskind Family, senior management or their respective affiliates.

This proposal does not affect our business. For AmTrust employees, and for all of the brokers, agents, customers, partners and communities that we serve, it remains business as usual with client/policyholder service and support to continue at the same levels of excellence. AmTrust continues to be financially strong, with a capital base and balance sheet that is well-prepared for future growth. AmTrust’s “A” (Excellent) FSC “XV” rating remains intact. We remain focused on continuing to serve all of our markets and support your success through outstanding service and products.

We will keep you informed of any additional news we announce on this matter. We ask you to stay focused and not be distracted by any speculation that may occur as a result of this proposal.

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Post ID: @5xcn+R5bDvym

I was impacted by the lay off. Human Resources and Ariel the IT VP was cruel in the delivery of the layoff. On Wednesday those that were impact received an meeting invite without a name in the subject in the title (no agenda) and all those impacted names were on the distribution list. Our names were not obscured. The invite was sent at 1pm and the meeting was at 2. The invite asked that we be on time and don’t be late.

Once we arrived the VP gave a 30 second spill about reorganizing and that we are the first pilot group and there will be more to come. And that was it. He asked that we wait for our name to be called by a HR rep to go over our compensation package. The package was weak . And you must sign away your rights not to sue before you can receive your money. This company is in financial despair. On Friday they layed off employees in their Accounting Department.

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Post ID: @3ysj+R5bDvym

I was impacted by the lay off. Human Resources and Ariel the IT VP was cruel in the delivery of the layoff. On Wednesday those that were impact received an meeting invite without a name in the subject in the title (no agenda) and all those impacted names were on the distribution list. Our names were not obscured. The invite was sent at 1pm and the meeting was at 2. The invite asked that we be on time and don’t be late.

Once we arrived the VP gave a 30 second spill about reorganizing and that we are the first pilot group and there will be more to come. And that was it. He asked that we wait for our name to be called by a HR rep to go over our compensation package. The package was weak . And you must sign away your rights not to sue before you can receive your money. This company is in financial despair. On Friday they layed off employees in their Accounting Department.

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Post ID: @3qpu+R5bDvym

Here is the content of the email sent to IT employees:

SUBJECT:

PLEASE READ -- Important Group IT Announcement

BODY:

Dear IT team,

We have some important news to share with you. Following our global growth and acquisition activity of the past several years, we are now taking the opportunity to ensure all of our support functions are as efficient and productive as possible. In particular, we have reviewed the IT organization, which has never undergone a restructuring through all of our growth. As a result of this review, today we are taking action to align our IT headcount with key areas for future growth and reduce the redundancy that has accumulated in the department.

You are receiving this memo because you are key to our success, and we want to assure you that your employment will continue with AmTrust.

Today, we are notifying those whose positions are being eliminated. We ask that you respect that this is a difficult message for many people and also ask that you do not discuss this process with anyone other than your Human Resources representative.

Thank you for your continued support and hard work during this time.

Ariel Gorelik

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Post ID: @1zaf+R5bDvym

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