InsurTech startup Branch has recently undergone a second wave of layoffs, impacting 85 employees, following a previous cut of employees in June, according to sources from The Coverager.
However, the company rebuked these claims in a response to the news organisation. The US-firm refrained from confirming the specific details of the move, instead declaring that the impact of the cuts was overstated.
The statement from Branch to The Coverager said, “Persistent inflation has posed a significant challenge for home and auto insurance companies such as ours and as stewards of our members’ capital, we need to meet the moment with a sound and responsible plan for our members, employees, and investors. That’s why today, we’ve made the incredibly difficult decision to reduce the size of our team.
“This decision was made to ensure the strength of Branch’s business during these economically turbulent times, but makes parting with valued individuals no less difficult. We are working to ease the transition of affected employees in their next career step, including a severance package, two months of paid health insurance continuation through COBRA, career placement services with a dedicated coach, and an extended post-termination exercise period for vested options.
“Branch is a company that makes big bets; we believe that we can help restore insurance to its original intent of being a force for communal good. While this is a moment of loss and reflection, we’re equally focused on the opportunity that lies ahead–a future where insurance is easier to get, better, and more affordable for all.”
Earlier this year, a LinkedIn post by co-founder and CEO Steve Lekas revealed that they had conducted a round of layoffs, citing ongoing challenges that are facing the insurance landscape.
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