GEICO to cut about 114 Florida jobs as 2023 tort reform shrinks its legal workload
The permanent layoffs hit remote staff in the insurer's Staff Counsel Florida PIP unit, starting December 31.
GEICO will permanently lay off about 114 remote employees in Florida who report to its Lakeland office, in the Staff Counsel Florida PIP organization, according to a WARN notice the company filed with the Florida Department of Commerce on November 2. The separations are expected to begin on or about December 31.
The layoffs will fall in stages, with the final separations on or about April 30, 2027, and the losses are expected to be permanent, the notice said. The affected employees are not represented by a union, bumping rights do not apply, and the notice does not list job titles or the number of employees in each job classification. The affected staff all work remotely, and no Lakeland residents will lose their jobs, the company told The Ledger in a November 5 email.
The company traces the cuts to Florida's 2023 tort reform. "The legal system reforms enacted in Florida in 2023 have significantly reduced litigation volume in the state, contributing to a more stable insurance market and real savings for our customers," Ross Feinstein, GEICO's lead external communications, said. "As that litigation has declined, we have adjusted our Staff Counsel operations accordingly, with a focus on identifying potential opportunities for our people across the company." PIP — personal injury protection — is the no-fault auto coverage at the center of much Florida insurance litigation, and the 2023 law, HB 837, shortened the deadline to sue, raised the bar for fault claims and ended one-way attorney-fee awards in insurance cases.
It is the second round of cuts to touch the Lakeland office in three years. In October 2023, GEICO said it would lay off 6% of its United States workforce — about 2,000 people nationwide, including at least 22 of the 3,000 employees at the Lakeland office on Pipkin Road. Since then, the company says it has added jobs, including a new office and 1,500 jobs in the local area. The Pipkin Road office is one of 20 GEICO regional offices across the country, and the third Florida location alongside Tampa.
The notice was filed 59 days before the first separations — one day short of the 60 days of advance notice the WARN Act generally requires for a mass layoff of this size.
GEICO, owned by Berkshire Hathaway, has slipped to the third-largest auto insurer in the United States, behind State Farm and Progressive. Its Lakeland office opened in 2019 with a seven-year, 100% property-tax break from Polk County, in exchange for adding 300 jobs paying 155% of the average wage and $11.9 million in infrastructure investment.