In its latest wave of cost-cutting measures, Nationwide Mutual Insurance Co. laid off 480 employees and contractors.
The layoffs are centered in the Columbus, Ohio-based insurer's information-technology group. Of the total job losses, 230 are full-time Nationwide employees, including 150 based in central Ohio. The remaining 250 are third-party contractors spread across the country, said Eric Hardgrove, Nationwide's spokesman.
Hardgrove did not indicate if other jobs would be eliminated in the near future. He was quick to note, however, that those currently affected will receive an additional 60 days of pay in their severance packages, as well as assistance in finding new employment.
"They'll also be eligible for some of the positions open in some of the insurance and financial services company's other businesses," Hardgrove added.
Over the past two years, the insurer nixed about 3,000 jobs nationally. Last year, the company lost $342 million, which was attributed to the influx of claims from an unusually high number of hurricanes as well as a sharp drop in investment returns.
In fact, many insurance companies across the country have reported that they incurred substantial losses as a result of the recession and mounting claims related to the high number of storms. In response, some have had to make reductions in staff size.
Hardgrove said that, in addition to the job cuts, Nationwide will reduce costs by scaling back project and operational expenses, travel and training to be more efficient and focus on providing value to customers. He emphasized that this latest layoff was a difficult decision but necessary for the company to remain viable in the current market.
"We want to make sure we manage our resources so we can be even more efficient and competitive in an extremely competitive environment," Hardgrove said.
Source: The Columbus Dispatch, www.dispatch.com.
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