Mayfield Village, Ohio - In early September, The Progressive Group of Insurance Cos., based in Mayfield Village, Ohio, announced a reorganization designed to increase the company's ability to execute on key strategies, lower its non-claims expense ratio and foster growth through more competitive pricing, improved customer retention and an increased focus on brand development. The reorganization included combining its agency and direct businesses into a single personal lines organization. 

Since then, business areas have reviewed organization and staffing. As a result, the company today announced a reduction-in-force in its information technology group and its personal lines group of 263 people and 78 people, respectively. This represents about 7% of its IT work force countrywide, and 1% of its Personal Lines group countrywide; those affected in personal lines are primarily supervisors and managers in the company's sales and customer service call center operations. Everyone affected will be employed through Nov. 30, 2008; most of the affected people are based in Cleveland. The company employs more than 26,000 people throughout the country and nearly 10,000 in Northeast Ohio.

"This is undesirable and difficult, but necessary," says Progressive President and CEO Glenn Renwick. "This industry, like many, is extremely competitive. We are constantly challenged to streamline our operations to compete effectively. This is a critical step we need to take now to remain competitive and to help ensure our future success in the industry."

Source: Business Wire



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