Pie Insurance fires 14% workforce as funding environment deteriorates
Pie Insurance, a US-based tech-enabled provider of workers' compensation insurance for small businesses, has implemented a workforce reduction, letting go of 14% of its employees, which amounts to 66 individuals. This action is part of the company's broader budget revision process.
"We've made the very hard decision to reduce our headcount by about 14 per cent, which will impact 66 Pie-oneers. This decision was made as part of our wider budget revision process that we have undertaken over the last few months," Pie CEO, John Swigart wrote in a message, said a report by IANS.
The company made the decision in February to reassess its three-year plan in order to secure profitability using its available cash reserves. "Over the past three months, Pie's leadership team has been working on these revisions and ultimately identified over $25 million in annual expenses to eliminate from our budget," Swigart said.
"Without impacting our focus and investment in technology innovation, we first looked at aggressively cutting non-headcount expenses, with more than half of our total reductions ultimately not staff related. Unfortunately, we could not achieve our overall target without also making reductions to headcount," he added.
The affected individuals will be provided with a comprehensive separation package, which includes severance pay and health benefits. Additionally, the company will offer career placement and coaching services to support their transition. Furthermore, departing employees will be allowed to retain all their equipment.
As of now, several companies underwent significant employee layoffs. Meta, formerly known as Facebook, prepared for additional workforce reductions recently. Vice Media filed for bankruptcy after a series of job cuts. Amazon India continued its restructuring efforts, resulting in the termination of over 30,000 employees. Morgan Stanley implemented cost-cutting measures and anticipated around 3,000 layoffs by the end of Q2. These were just a few instances of companies facing workforce reductions during this period.
