(Bloomberg) --Berkshire Hathaway said its auto insurer Geico has cut tens of thousands of jobs as part of its efforts to turn around a business that's lagged behind peers.
Berkshire's Vice Chair of Insurance Operations Ajit Jain said Geico reduced the insurer's headcount from approximately 50,000 to roughly 20,000, though he didn't specify the time period for the reductions.
Geico, the main contributor to Berkshire's insurance results, posted $2.2 billion of pretax underwriting earnings, a roughly 13% jump from last year's first quarter. The auto insurer added new clients in the period, building on a rebound that began in the second half of 2024 after losing market share to competitors in previous years.
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Geico has turned a corner by reducing its workforce and catching up on technology, Jain said, crediting Geico Chief Executive Officer Todd Combs with the progress.
"I do not want to be so arrogant to say 'mission accomplished,'" Jain said of Geico, noting that it needs to focus on artificial intelligence to stay competitive.
