SEATTLE — Geico is laying off 6% of its national workforce, or around 2,000 workers, reportedly including an undisclosed number at the insurance company’s Renton offices.
“To better position ourselves for long-term profitability and growth, and after a thorough evaluation across all lines of business, we are reducing our workforce,” CEO Todd Combs said in a message sent to all employees Thursday morning.
Geico hasn’t yet disclosed the locations of affected workers or when the cuts take effect, and a spokesperson declined to provide details when asked about the company’s offices in Renton.
But the Renton offices appear to have seen significant cuts, according to social media accounts and a message sent to The Seattle Times.
According to one person who contacted The Times, many Renton employees were told Thursday they had been let go. The person requested anonymity to avoid backlash from the company for discussing the layoffs with the press.
Reports of Renton layoffs were echoed by several commenters on the social media site Reddit.
Combs blamed the cuts in part on losses resulting from “levels of inflation that we haven’t seen in decades, delays in parts or labor shortages extending time to repair, rising medical costs, and other factors.”
Last year, Geico closed its offices in California and laid off “hundreds of employees,” according to a Fox Business story at the time.
Geico, formally known as The Government Employees Insurance Company, is one of the largest auto insurers in the U.S. It was founded in 1936 and acquired by Berkshire Hathaway in 1995. It’s also famous for quirky TV ads and its current mascot, a gecko with an English accent named Martin.
Combs said laid-off workers will get “career transition assistance, including individual career coaching sessions, assistance with resume updates, on-demand interviewing and networking resources, and tips to enhance one’s social media presence.”
He added they could also apply for other open jobs at GEICO and would be provided “existing benefits, including health insurance, during the notice period,” though he did not say what period was.
Combs also told employees the company “will soon be increasing our collective presence in the office” by mandating more in-person work for remaining staff.
