Why this national consolidator made layoffs
Westland Insurance issued an internal email dated Jan. 15, announcing the layoff of 30 employees, citing the inability to meet its 2023 financial targets, as well as salaries and expenses that exceeded plan.
“Today, I’m sharing some very difficult news with you,” Westland president and CEO Jamie Lyons says in the Jan. 15 email, a copy of which was obtained by Canadian Underwriter. “This morning, we reduced the size of our Westland team by about 30 people. The impacted employees are all aware and had conversations with their managers this morning. In this email, you’ll find more detail about this decision and the broader context….
“The people leaving Westland today are mostly from non-production functions (people and performance, marketing, accounting and finance, and IT), however, there are some impacted operations and leadership positions.”
The layoffs will affect approximately 1% of the brokerage’s 3,300 employees, the internal email reads.
A Westland spokesperson confirmed the authenticity of the email in a statement to CU this week.
“Westland, like many others in our industry, needs to manage for strength and resiliency in the current economic climate, especially as we continue to strategically grow and transform our business,” Westland’s statement to CU reads. “The factors that led to these layoffs include the expectation of a more challenging economic environment ahead and the need for us to prioritize operational efficiency to meet our financial targets.
“While we underperformed our plan in 2023, Westland’s underlying business is strong, and we plan to continue meaningful reinvestment back into our business.”
In its statement, Westland said it’s committed to its 2024 M&A growth targets.
“Growth through acquisition remains a critical component of Westland’s overall business strategy,” the statement reads. “We’ll continue to invest in this area of our business, along with making investments in our people and technology, as we serve our clients across Canada.”
The brokerage said it doesn’t expect the layoffs to impact clients or insurance company partners.
“We deeply regret the impact this has had on our team members and are doing everything we can to support them during this difficult time. Our focus now is on all current and impacted employees as we work through the transition,” Westland’s spokesperson said.
In the internal email viewed by Canadian Underwriter, Lyons referenced the industry’s reputation for stability.
“Insurance as an industry is relatively stable, which allows us to weather economic fluctuations better than some other sectors. While it may not feel like it given today’s announcement, Westland also continues to be one of the greatest success stories in Canadian insurance marketplace, which means no shortage of opportunity for our employees,” Lyons said in the email.
Feature image by iStock.com/pcess609
