Root Inc. known for Root Insurance announced on Wednesday that it will be reducing its overall headcount by 20%, impacting 160 employees.
The Columbus Ohio based company announcing its earnings said it reduced its overall losses from the previous quarter. The company which had also tied up with Carvana now has 38% of its overall new insurance signups from the platform.
Statement in its earnings mentions the reduction in the workforce – “To further improve cash flow we are prioritizing resources that support Root’s go forward strategy. As a result, we
have made the difficult decision to reduce our headcount by roughly 20%. At the same time, we continue to right-size our non-headcount expenses. We expect these actions to collectively lower run rate expenses $50million annually.”
CEO Alex Timm has also mentioned in the earnings call – “One thing has been made crystal clear: Root must control its own destiny.”
This is the company’s 2nd round of layoffs for this year – the company had let go of 330 Employees in the first round of layoffs earlier this year.