In what insurance analysts are declaring as an additional hard hit to the economy and to a business with a distinguished history, the Woodland Hills branches of 21st Century Insurance may drop up to 750 jobs in the next 16 months as its latest forerunner, Farmers Insurance Group, amasses affairs.
Farmers Insurance, a subsidiary of Zurich Financial Services Group, bought 21st Century from the distressed insurance titan, American International Group, last July 1, 2010 for $1.9 billion.
Since June 2010, Farmers Group has been searching for capabilities and methods to modernize operations.
There were a number of areas where they caught sight of a need to reduce the labor force because there were a few redundancies.
Fifty-six office workers out of 979, who hold a job at the two buildings 21st Century Insurance rents out in Woodland Hills, were informed August 27 that the company will no longer need their services. Three more positions will be slashed on September 4, another position is planned to be removed on September 30, and 52 more employees will be scratched off before October ends.
The work reduction would be made gradually, more or less on a monthly basis.
Farmers Insurance will as well cut its employments in Georgia.
On the whole, some 1,200 appointments are marked to be carved off before the end of the year, corresponding to 20 percent of the 21st Century personnel.
However, 21st Century Insurance will not be going somewhere else.
Its acquirement helped Farmers Insurance move toward the direct-to-consumer marketplace, which Farmers dreams will assist them in competing with alternative multi-channel businesses like Progressive and Allstate.
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