COLUMBUS, Ohio (COLUMBUS BUSINESS FIRST) — Root Inc. cut 160 jobs, nearly 20% of its workforce, on Wednesday as the auto insurer goes all in on auto policies presented to car buyers at time of purchase instead of direct sales.
Sales of such policies to Carvana Co. customers have tripled so far this year – now 38% of new business, and the parent of Root Insurance Co. expects to announce a second major partnership for embedded quotes in the coming months, executives said in reporting third-quarter results Thursday.
“We are at the very beginning of a massive shift of auto insurance distribution, and we are at the tip of that spear,” co-founder and CEO Alex Timm told analysts in a recorded call. “One thing has been made crystal clear: Root must control its own destiny.”
It’s the second major round of job cuts this year at Root (Nasdaq: ROOT). In January, the company terminated 330 employees.
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