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Allstate announces plan to lay off 3,800 employees

Allstate announces plan to lay off 3,800 employees
Posted at 3:29 PM, Oct 01, 2020

Allstate Insurance announced on Wednesday that they are planning to lay off 3,800 employees.

In a press release, the company said the layoffs were part of a restructuring plan to lower costs.

Allstate will make the cuts in the sales, claims, and support departments.

"Implementing this plan is difficult as we still deal with the impact of the pandemic but necessary to provide customers the best value," said Tom Wilson, Chair, President, and CEO of Allstate in the press release. "We have expanded transition support for impacted employees including prioritized internal hiring, extended medical coverage, expanded retraining support, and help in employment searches."

According to the Wall Street Journal, the layoffs cover approximately 8% of Allstate's 46,000 employees.

Roughly 1,000 of those laid off are linked to the pandemic-related refunds the insurance company is giving to customers, WSJ reported.

Back in April, Wilson told CNBC that the pandemic has resulted in people driving less, and as a result, there are fewer accidents and claims.

Allstate reduced policy-holders' bills back in March, like many insurers.