Allstate Layoffs 2020: Thousands Of Employees To Be Laid Off In Cost-Cutting Measure

Allstate (ALL) is reportedly looking to lay off thousands of employees as it moves to cut costs across the company.

The insurance company’s CEO Tom Wilson made the announcement to senior executives during a video conference, saying that that the layoffs would come at all levels within Allstate with more details about the cuts coming soon, Irish News reported.

Wilson has been focused on cost-cutting efforts in past years, cutting agent commissions by 10% in 2020, the news outlet said.

Allstate has felt the pinch of the coronavirus as it sees its policyholders drive less due to stay-at-home orders.

The layoffs come as Allstate looks to rival its competition – State Farm – and is thought to be entering into a price war with its competitor, Crain's Chicago Business reported. State Far, has reportedly reduced its rates by an average of 11% throughout the U.S. during the pandemic. Allstate has not reduced its rates during the COVID-19 crisis but does provide monthly rebates to customers.

Allstate reportedly employs over 45,700 workers, with nearly 7,800 employs working at its Northbrook, Illinois, headquarters.

Shares of Allstate stock were down 1.58% as of 11:21 a.m. EDT on Monday.