AAA to Cut Jobs

Restructuring will lead to the loss of about 100 jobs for Walnut Creek, Calif.-based AAA Northern California, Nevada and Utah (AAA NCNU).

A report yesterday in the Condra Costa Times, reported that the separation of the company's insurance and auto club businesses into separate firms is the cause of the job cuts. Effective May 31, about 74 positions are expected to fall under the axe, and approximately 26 other positions are planned for termination by the end of the year.

As of January 1 of this year, the Times reports, the companies were rendered independent of one another, with the insurance arm, which operates in auto, property, specialty and life insurance, being rebranded as California State Auto Group. The auto club side of AAA NCNU, which will retain the AAA handle, focuses on member services, such as emergency roadside service and vacation discounts.

According to statements given to the Times, AAA says the reorganization lets each company focus on what they do best.

Despite the impending job losses, the Times also notes that last year AAA added 118 positions, which was a 12.5% increase in workers at its headquarters. AAA told the paper that it hopes to reintegrate many of the soon-to-be-let-go employees into the newly separated companies.