Insurer Nationwide said late last week that it is reducing its headcount by about 5% over the next year.
“We can’t speculate on the total number of job impacts,” said Nationwide in a statement. “Eligible associates are able to apply for any of the hundreds of open roles we have across the country.”
The Columbus, Ohio-based insurer said its “modernization journey” includes periodic business-strategy updates that can include shifts in staffing, with some areas increasing and others decreasing in headcount. Nationwide added that P/C and supporting functions like 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,” Nationwide added. Calling staff reductions a “last resort,” Nationwide said impacted employees will get 60-days notice and a severance package.
The upcoming layoffs do not impact the insurer’s financial services business lines, it noted.
An analysis by S&P Global Market Intelligence found nearly 20 U.S. P/C insurers—including the likes of GEICO, Liberty Mutual, Farmers, and USAA—cut at least 6,800 jobs in 2023. Insurtechs like Hippo, Branch, Corvus and Pie had to layoff employees in 2023 as well.
In February, Liberty Mutual confirmed it was eliminating another 250 positions. USAA announced another round of layoffs in April.
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