Farmers Group is reducing its workforce again, one year after eliminating 11% of its staff — about 2,400 employees.
The Los Angeles-based insurer confirmed that it filed a Workers Adjustment and Retraining Notification (WARN) in California on August 7, reporting 84 employees would be permanently laid off effective October 7. The company has not disclosed how many employees may be affected overall in this round.
Agency Model Transition
Farmers is restructuring its exclusive agency (EA) system in the East region, transitioning it to a district manager model already used across the West and Central territories. Under this system, district managers can build their own businesses while coaching exclusive agents, according to a company video.
While Farmers will retain its EA distribution channel and maintain its three-region structure, the realignment will affect support roles for East region agents. Corporate communications director Luis Sahagun noted that the move includes “an internal realignment of some state responsibilities.”
Roles Potentially Impacted
Online comments indicate that the changes may impact positions in sales management, human resources, recruiting, and temporary staffing. Sahagun added that all affected employees are eligible to apply for other roles within the company.
Job site Indeed.com currently lists more than 370 open positions at Farmers.
“Our goal is larger, stronger, and more diversified agencies, and we expect significant growth with this change,” Sahagun said. “Our model is focused on building an environment where entrepreneurs can thrive.”
Industry Context
Farmers, a subsidiary of Zurich Insurance Group, distributes products through exclusive agencies, independent agents, direct online sales, and company call centers. The company has been working to reduce exposure to natural catastrophes, especially in states like Florida and California. It has also faced staffing concerns from in-house adjusters in the Southeast who reported being overworked.
The layoffs come as several other major insurers also reduce their headcounts. Nationwide announced in July that it plans to cut about 5% of its workforce over the next year. Liberty Mutual confirmed in February that it would eliminate another 250 jobs. USAA announced additional layoffs in April.
Labor Market Trends
A recent labor market study from Aon and The Jacobson Group found that 14% of insurance companies plan to reduce staff in the next 12 months. While 79% of companies expect revenue growth, only 52% plan to increase staffing, and 34% intend to maintain current levels.
Smaller insurance companies, however, are more likely to expand their teams—64% indicated they plan to add staff in the next year.
Currently, U.S. insurance companies employ just over 1.6 million people, a figure that is flattening. However, when including distribution, the broader insurance industry added nearly 42,000 jobs in the past year, bringing total employment to 3.025 million.
Automation is the most frequently cited reason for workforce reductions, followed by overstaffing in certain areas. Some multi-line property/casualty companies are also rebalancing portfolios, shifting away from personal lines.
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