COLUMBUS, Ohio — Nationwide is joining the list of insurance companies that are cutting its workforce.
The Columbus-based company said it's reducing the workforce in its property and casualty division, but wouldn't give a specific number of people who will be laid off.
In a statement, Nationwide said the property and casualty division, along with some of its supporting functions, including technology, will operate with fewer positions.
"This is due to a variety of factors including associates voluntarily moving to other roles within and outside Nationwide, not filling open roles when possible, slowing business in underperforming lines, and operating model changes," the company said.
Nationwide said the changes will reduce its headcount by about 5% over the next year, but wouldn't speculate on the total number of job impacts.
The company added that the layoffs do not impact Nationwide's financial services business lines.
Bill LaFayette, owner of Regionomics who studies local economic trends says Nationwide’s announcement is concerning for the local economy.
“The weakness we are seeing in insurance is concerning simply because it's such a major part of our economy much more than average. Insurance is one of the mainstays of our economy we have more than 30,000 people working in insurance here in central Ohio,” he says.
Nationwide joins other insurance giants who have also slashed jobs recently. Prudential Financial trimmed 243 executive roles earlier this month. In October, Liberty Mutual announced it was cutting 850 jobs. Geico cut 2,000 staff and Farmers Insurance laid off 2,400 jobs.
Nationwide's full statement can be read below:
"Nationwide is strong and stable.
As markets change and the company continues our modernization journey, we are positioning our Property & Casualty and supporting technology teams to serve our members and agents for years to come. These periodic business strategy updates typically include shifts in staffing—with some areas increasing and others decreasing—based on evolving business needs.
Over the next year we anticipate P&C and some of its supporting functions including Technology, will collectively operate with fewer positions. This is due to a variety of factors including associates voluntarily moving to other roles within and outside Nationwide, not filling open roles when possible, slowing business in underperforming lines, and operating model changes.
Whenever possible, we are providing advance notice of these changes which will reduce Nationwide’s total headcount by approximately 5 percent over the next year. We can’t speculate on the total number of job impacts. Eligible associates are able to apply for any of the hundreds of open roles we have across the country.
It is important to note that these actions do not impact Nationwide's financial services business lines.
Staff reductions are always a last resort, and we will support associates throughout their career transition. All impacted, eligible associates will be provided 60-day formal notice, a severance package and outplacement services. We are committed to moving through this period with great respect and full support for those impacted."