A little more than five months after it cut 6% of its workforce, Hagerty, Inc., trimmed another 4% on Wednesday morning.
The Traverse City-based company will lay off 83 employees, according to a Securities and Exchange Commission filing submitted Wednesday morning. The April 12 layoffs came “following the strategic review of business processes as the Company focuses on driving efficiencies in order to achieve growth and profitability goals,” the SEC filing states.
“As part of a restructure of our business, Hagerty today announced that we are reducing our workforce by 4%, 30 of whom are based in Traverse City,” a statement provided by company spokesman Andy Heller reads. “We remain committed to Traverse City and still employ more than 600 people in the Grand Traverse Region.
“Although a small percentage of our team members were impacted by this extremely tough decision, we are committed to being as supportive as possible to those leaving us,” the Hagerty statement continued. “We are providing severance, a benefit stipend and career transition services.
“This move is intended to position us for continued long-term growth and profitability as a leading automotive lifestyle brand. Hagerty continues to drive strong business momentum, including revenue growth of 27% in 2022, and look forward to maintaining this momentum in 2023 so we can invest in our people, brand and technology. We will miss our team members who were impacted by the restructuring.”
Hagerty laid off 103 employees in a Dec. 1 filing with the SEC.
With this latest round of layoffs, Hagerty “expects to realize a charge of approximately $5 million, primarily in the first quarter of 2023, associated with this headcount reduction,” according to the SEC filing.
“All impacted team members will have the opportunity to receive severance based on the Company’s existing severance plan which considers years of service at the Company, as well as additional benefits for impacted employees, including a payment for health care coverage and outplacement services,” the filing states.