Putting Hundreds of People Out of Work: Report
The Government Employees Insurance Company (GEICO), a private American auto insurance company, had reportedly shut down all its 38 insurance offices in California.
Customers can still get policies but have to use mobile or computer for products and services. Insurance in that state is now solely available online or through a mobile device, as the company has discontinued its use of telephone agents.
According to The Sacramento Bee, hundreds of GEICO employees across the state were laid off due to the closure of 38 offices.
An investigative reporter for TV stations in California went to the GEICO office and found a notice that read, “All GEICO offices in California are CLOSED for business.”
“It may come as a bit of a shock for GEICO customers here in California. GEICO has closed all 38 offices in the state, where agents sell insurance. The company says however it is not leaving California. It will sell policies online instead,” according to the tweet.
The precise reasons for the closures in California and massive layoffs remain unclear. FOX Business has reached out to the company for more information.
In a statement to the Sacramento Bee, a company spokesperson declined to elaborate on the changes, but clarified that GEICO was not leaving the Golden State.
“We continue to write policies in California, and we remain available through our direct channels for the more than 2.18 million California customers presently insured with us,” the company told the paper.
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