Farmers Insurance Implements Large-Scale Layoffs to Boost Profitability
Farmers Insurance is laying off 2,400 workers, representing 11% of its workforce, as part of cost-cutting measures and a focus on long-term profitability. The move comes amidst a challenging year for the California insurance market, with rising construction costs, reinsurance fees, and growing wildfire risks impacting insurers. Farmers' decision to not accelerate growth in the state follows similar actions by State Farm and Allstate. The company also plans to pull back further in Florida. While Farmers has fared better than its competitors, industry groups are calling for regulatory reforms to address the market challenges. Critics argue that proposed changes would amount to a "multi-billion dollar bailout" for the insurance industry.