Nationwide layoff coming in P&C; Stellantis might make cuts if salaried employees don’t step down

Nationwide plans to cut 5% of its workforce over the next year, according to a statement the insurance company provided to several media outlets, including Repairer Driven News.

The layoffs will result from global sourcing partnership expansions within its property and casualty and technology departments. Some positions will be moved to the new partners, some within Nationwide, and some eliminated.

“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,” Nationwide said. “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.”

The company didn’t respond to questions from RDN about how the collision repair industry could be affected by the cuts.

Nationwide also said it would provide advanced notice of layoffs whenever possible but didn’t provide an exact number of employees that will be affected.

“Eligible associates are able to apply for hundreds of open roles we have across the country,” Nationwide said. “We are committed to moving through this period with great respect and full support for those impacted.”

All impacted and eligible employees will be given a 60-day notice of the cuts, a severance package, and outplacement services, according to the statement.

The Columbus Dispatch reports that Nationwide employs about 24,000 workers meaning a 5% layoff would be about 1,200 employees. However, Nationwide said the layoffs will only come from its P&C and technology departments, not from its total headcount.

Total sales last year were $60.3 billion, which was $3.5 billion above 2022, according to Nationwide’s 2023 annual report. The company profited $1.3 billion and owned nearly $299 billion in assets last year while paying out $22.6 billion to its members in claims and benefits.

P&C insurers represented the largest portion of insurance-related layoffs in 2023 year, according to an S&P Global Market Intelligence analysis released in December.

At least 6,800 jobs were cut throughout the year in the P&C space with 20 companies trimming back on staff to “refocus their businesses or decelerate cash burn.”

Farmers Insurance topped S&P’s list of layoffs after the company let go of 2,400 people in August, or 11% of its employees across all its business lines. It said at the time that it was shifting to a “more simplified and streamlined organizational structure.”

Automaker Stellantis said on Tuesday it may have to lay off employees if a “voluntary separation program” isn’t adhered to.

Automotive News reported that salaried employees from the vice president level down will be eligible for the program. According to a company email obtained by the news source, and confirmed by a Stellantis spokesperson, there is no minimum service requirement.

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