Lemonade releases 20% of Metromile staff, sells enterprise platform
The layoffs included Metromile’s CFO and design, engineering and product team employees, including the senior executives.
Around 20% of Metromile Inc.’s staff were let go following the insurtech’s acquisition by Lemonade Inc., the purchasing firm confirmed to PropertyCasualty360.com in a statement.
In an emailed statement, a Lemonade spokesperson said: “The good-news-bad-news is that this acquisition is synergistic, in that the combined entity is better than the sum of its parts, and can operate with fewer people than were needed to staff the two standalone. This makes the deal compelling to shareholders, but clearly is painful to those who weren’t extended an offer to join Lemonade.”
The layoffs included Metromile’s CFO and design, engineering and product team employees, including the senior executives, according to a post by verified Metromile employees on Blind. According to the post, Lemonade told staff the current economic downturn and the deal taking longer than expected to close drove the decision to cut staff.
Metromile CEO Dan Preston said the layoffs were unexpected and a shock, according to a memo from Preston to staff viewed by PC360. Preston now serves as senior vice president of strategic initiatives for Lemonade.
EIS buys Metromile’s Enterprise Business Solutions platform
Also following the closing, Lemonade has agreed to sell Metromile’s Enterprise Business Solutions (EBS) platform to EIS Software Ltd. in an all-cash transaction. Other terms of the deal were not disclosed.
EBS was Metromile’s SaaS claims automation and fraud detection platform, which was licensed to large carriers.
Lemonade tells PC360 that the EBS platform was divested as the insurtech is focused on building consumer-facing products and offerings in renters, homeowners, pet, car and life insurance lines.
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