BUFFALO, N.Y. — GEICO confirms to 2 On Your Side that it plans to lay off 5.5% of its workforce in Western New York. The company declined to share the number of people, but the privately owned insurance company employs 40,000 nationwide.
A letter from GEICO Chairman, President & CEO Todd Combs informed workers it was laying off 2,000 of them.
"This will allow us to become more dynamic agile and streamline our processes while still serving our customers," Combs told his workforce. "We recognize we're saying goodbye to beloved colleagues and friends, and as a leadership team, we are committed to supporting those affected in the days ahead," he promised.
GEICO had previously been on a hiring spree in Western New York. It hired more than 600 associates in Buffalo in 2020 and attempted to hire an additional 350 in 2021.
The insurance company, which is owned by Warren Buffett's Berkshire Hathaway plans to offer career transition assistance, career coaching, and assistance updating resumes for the employees who are being let go.
'Foster a sense of community and connection'
The letter says GEICO believes spending time in the office paired with virtual work will help it build its company culture and is asking employees to return to the office.
"We believe that being in the same place can foster a sense of community and connection and that meaningful time together will allow us to build relationships that create trust and strengthen our sense of belonging."
Managers will share the required number of in-office days with employees over the next few weeks with the goal of implementing the new work policy on January 1, 2024.
You can read the full letter here: