Employers Holdings cuts staff; | nnbw.com

Employers Holdings cuts staff;

NNBW Staff

Employers Holdings Inc., a workers compensation carrier headquartered in Reno, plans to lay off 14 percent of its workforce.

The company so far is mum on the effects of the reorganization in the Reno office, where it has said it employs about 200.

In a press release, publicly held Employers Holdings said the staff reduction comes as it completes its consolidation of AmCOMP Inc., a Florida insurance carrier it acquired late last year.

Corporate and support functions for the company including the AmCOMP operations will be run entirely out of the company’s office in South Meadows. Employers will create a series of regional offices to oversee day-to-day operations.

AmCOMP previously was headquartered at North Palm Beach, Fla.

Douglas Dirks, president and chief executive officer of Employers, said the company also is reducing its workforce because of the pressures of a down economy.

Employers estimated the consolidation of offices and staff reductions will save $12 million this year and $20 million to $22 million annually in future years.

It said the costs of the layoffs will total about $3 million in the first 90 days of this year.

The layoffs are expected to be completed by the middle of this year. Employers said it will provide

severance payments and outplacement support to workers who lose their jobs.

The company said it will provide more details about its cost-cutting moves when it announces its 2008 earnings. That’s expected to come late this month.


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