Root Layoffs Part Of A Company Revamp
Root 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.