Nationwide announces 5% reduction of its workforce
Eligible associates will be provided 60-day formal notice, company says.
Nationwide is planning to cut 5% of its workforce over the next year, the company confirmed in a statement released July 26, 2024.
“Staff reductions are always a last resort, and we will support associates throughout their career transition,” the insurance and financial services company said. “All impacted, eligible associates will be provided 60-day formal notice, a severance package and outplacement services.”
Nationwide anticipates property and casualty lines along with supporting functions such as technology will have fewer positions the next 12 months due to associates voluntarily moving to other roles, not filling open roles when possible, slowing business in underperforming lines, and operating model changes, according to the statement.
The company’s latest earnings result showed sales exceeding $60 billion in 2023, up $3 billion from 2022, and marking the third consecutive year for record high growth. Nationwide also reported $1.3 billion in net operating income for 2023, with nearly $23 billion in claims and benefits paid to its customers.
“Nationwide is strong and stable, “the company said. “As markets change and the company continues our modernization journey, we are positioning our Property & Casualty and supporting technology teams to serve our members and agents for years to come. These periodic business strategy updates typically include shifts in staffing — with some areas increasing and others decreasing — based on evolving business needs.”
The job cuts will not impact Nationwide’s financial services business lines.
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