Root Layoffs Part Of A Company Revamp
Tuesday, January 25th, 2022 Auto Property TechnologyRoot Insurance is targeting its claims and sales departments as part of an increasingly aggressive effort to improve its struggling fortunes.
The Ohio-based insurtech announced on Jan. 20 that it would slash 330 employees as part of what Root co-founder and CEO Alex Timm called ‘an organizational realignment.’
Timm, in a letter posted on the company’s website, blamed the layoffs in part on the pandemic-related ‘supply chain and inflationary pressures’ for causing ‘historic levels of loss cost increases.’
Most of the cuts will be in the company’s claims and sales departments, according to a regulatory filing.
The layoffs follow news earlier in January that Root would partner with Tractable to streamline and speed up its claims operations, through use of Tractable’s artificial intelligence (AI)-based products.
