Economical reduces 143 positions as part of ongoing business transformation plan

Economical Insurance announced Wednesday it is eliminating 143 positions across all of its offices, as part of its ongoing “business transformation program.”

The organizational restructuring of information technology at the Waterloo, Ont.-based insurer is now complete, while “business and process analysis is ongoing,” the company’s statement said.

“This has been a difficult decision and we are committed to helping the impacted employees with this transition with fair severance packages and support through our outplacement partner (including career transition services and effective job search strategies) as they seek new employment opportunities,” Karen Gavan, Economical’s president and CEO said in the company statement.

“We are appreciative of the contributions they have made to the company and wish them well as they move forward.”

The company said it will continue to report on the financial impact of its business transformation program, including restructuring expenses, in its quarterly earnings releases. Economical is still waiting on the federal government to set out regulations on demutualization in Canada’s property and casualty insurance industry.

“Since embarking on our business transformation in 2012, we have seen real progress toward our goal of improving productivity and service delivery through adoption of industry-leading processes,” Gavan noted in the insurer’s latest announcement. “This progress has positioned us to continue with business transformation and has identified further opportunities for efficiency and productivity gains.”