Berkshire's Geico Cites Massive Job Cuts, Tech Upgrades, As Reasons For Business Recovery
Berkshire's Geico Cites Massive Job Cuts, Tech Upgrades, As Reasons For Business Recovery
Berkshire Hathaway said Geico has cut tens of thousands of jobs to help revive its underperforming business.
Vice Chair Ajit Jain said the insurerās workforce dropped from about 50,000 to 20,000, though he didnāt give a timeframe, according to https://www.bloomberg.com/news/articles/2025-05-03/berkshire-s-geico-has-cut-thousands-of-jobs-in-turnaround-effort
.Ā
Geico posted $2.2 billion in pretax underwriting earnings in Q1āa 13% increase from last yearāand gained new customers, continuing its recovery from earlier market share losses.
AndĀ Geico has made significant tech upgrades to better align insurance rates with risk, Jain said Saturday at the companyās annual meeting, according to https://www.reuters.com/business/berkshires-jain-says-geico-has-made-rapid-strides-2025-05-03/
.Ā Geicoās turnaround is due to workforce cuts and tech improvements, Jain said, praising CEO Todd Combs. āI do not want to be so arrogant to say āmission accomplished,āā he added, emphasizing the need to focus on AI to stay competitive.
https://cms.zerohedge.com/s3/files/inline-images/Screenshot%202025-05-06%20at%208.50.03%E2%80%AFAM.jpg?itok=6TBoYidG
āMission accomplished? We have achieved a lot, but we have to do a lot more,ā Jain said.
Jain, who oversees Berkshireās insurance operations, noted Geico made "rapid strides in telematics" and now "is as good as anyone." He also credited Combs for workforce cutsāover 2,300 jobs in 2024āwhich helped sharpen Geicoās competitive edge.
In 2024, Geico improved its performance by slowing new policy growth and reducing the share of premiums used to pay accident claims. Previously, Jain had said Geico lagged in telematics, which tracks driver behavior to help price policies more accurately.
Recall, over the weekend Warren Buffett said he would be stepping down as CEO of Berkshire Hathaway, https://www.zerohedge.com/markets/sweet-sorrow-warren-buffetts-parting
for U.S. investing.Ā
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Tue, 05/06/2025 - 11:00
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