The Markel Corp. headquarters at Innsbrook. (Michael Schwartz)
Following what it referred to as a trend in the financial services industry, locally based specialty insurer Markel Corp. is laying off 80 employees over a nine-month period as it moves toward outsourcing some of its IT services.
The Fortune 500 announced the cuts internally Tuesday. Of the 80 positions across the U.S. and in London, about 40 are at its Richmond headquarters in Innsbrook.
Markel plans to contract with a national IT provider, the name of which was not released because a contract has not been finalized. The company expects that some of the employees affected will be hired by the contractor or offered other jobs within Markel.
“We are committed to working with our employees during this transition period over the next nine months,” Markel spokesperson Jennifer Blackwell said in a statement.
Blackwell added that the company is “seeking efficiencies” that would allow it to focus on its core business of specialty insurance products and services.
The layoffs will be phased over nine months. Affected employees have been notified and will receive outplacement services, severance pay and job placement as available with the service provider and Markel.
The company employs just over 1,900 workers locally. By the end of last year, its global workforce totaled 10,600, including 3,600 in insurance operations and 7,000 in Markel Ventures, the company’s investment arm.
The layoffs come nine months after Markel Ventures acquired West End IT firm CapTech Ventures. The company said the moves are unrelated.
Markel reported total operating revenues of $5.37 billion last year, according to its 2015 report. That was up from $5.13 billion the previous year and up from $4.32 billion in 2013. Profits to shareholders last year totaled $583 million, $321 million in 2014 and $281 million in 2013.
The Markel Corp. headquarters at Innsbrook. (Michael Schwartz)
Following what it referred to as a trend in the financial services industry, locally based specialty insurer Markel Corp. is laying off 80 employees over a nine-month period as it moves toward outsourcing some of its IT services.
The Fortune 500 announced the cuts internally Tuesday. Of the 80 positions across the U.S. and in London, about 40 are at its Richmond headquarters in Innsbrook.
Markel plans to contract with a national IT provider, the name of which was not released because a contract has not been finalized. The company expects that some of the employees affected will be hired by the contractor or offered other jobs within Markel.
“We are committed to working with our employees during this transition period over the next nine months,” Markel spokesperson Jennifer Blackwell said in a statement.
Blackwell added that the company is “seeking efficiencies” that would allow it to focus on its core business of specialty insurance products and services.
The layoffs will be phased over nine months. Affected employees have been notified and will receive outplacement services, severance pay and job placement as available with the service provider and Markel.
The company employs just over 1,900 workers locally. By the end of last year, its global workforce totaled 10,600, including 3,600 in insurance operations and 7,000 in Markel Ventures, the company’s investment arm.
The layoffs come nine months after Markel Ventures acquired West End IT firm CapTech Ventures. The company said the moves are unrelated.
Markel reported total operating revenues of $5.37 billion last year, according to its 2015 report. That was up from $5.13 billion the previous year and up from $4.32 billion in 2013. Profits to shareholders last year totaled $583 million, $321 million in 2014 and $281 million in 2013.