US-based firm Pie Insurance lays off 14% of workforce

SAN FRANCISCO: US-based tech-enabled provider of workers' compensation insurance to small businesses Pie Insurance has laid off 14 per cent of its workforce, or 66 employees, as part of the company's wider budget revision process.

"We've made the very hard decision to reduce our headcount by about 14 per cent, which will impact 66 Pie-oneers. This decision was made as part of our wider budget revision process that we have undertaken over the last few months," Pie CEO, John Swigart wrote in a message.

In February, the company decided to revise its three-year plan to ensure that they reach profitability with the cash they have on hand.

"Over the past three months, Pie's leadership team has been working on these revisions and ultimately identified over $25 million in annual expenses to eliminate from our budget," Swigart said.

"Without impacting our focus and investment in technology innovation, we first looked at aggressively cutting non-headcount expenses, with more than half of our total reductions ultimately not staff related. Unfortunately, we could not achieve our overall target without also making reductions to headcount," he added.

Those impacted will receive a comprehensive separation package, including severance pay and health benefits, plus the company will provide career placement and coaching services, and those leaving Pie will also keep all of their equipment.

Meanwhile, US-based autonomous trucking company TuSimple has announced to lay off about 30 per cent of its workforce globally as it works to preserve cash and stay in business.

According to TuSimple, the company had about 550 employees in the US prior to the layoff, and after the reduction, it will have about 220 employees.