Unum Group is laying off 30 staff members in Portland as part of a broad restructuring effort designed to assist the special needs insurance provider adjust to modifications in the marketplace.
The business, based in Chattanooga, Tennessee, stated Friday that it is laying off 120 staff members across the country. In addition to Maine and Tennessee, Unum has major operations in Worcester, Massachusetts; Columbia, South Carolina; and 40 other field workplaces throughout the United States. The layoffs do not affect Unum’s worldwide operations, which are primarily in England and Europe, the business said.
A company spokesperson said the layoffs belong to a continuous company-wide restructuring and simplifying effort. She stated Unum is intensifying services such as leave management for business, offering new voluntary group benefit bundles and also handling its fairly new oral and vision insurance bundles.
Unum likewise is making extra financial investments in digital services, said the spokesperson, who asked not to be named.
Analysts state consumers are significantly requiring digital services as they move more of their banking and other monetary tools onto mobile devices.
As a result of those shifts, which began early this year, Unum has employed about 200 employees in Portland and 1,000 company-wide, and it continues to hire, the spokesperson said. Unum employs about 3,000 workers in Maine and 10,000 around the world.
She said the layoffs are not connected to the coronavirus pandemic, which the restructuring effort in fact started early in the year, before the virus had actually started to spread worldwide and a pandemic was declared.
Laid-off workers have actually received 60 days’ notice, and their advantages will be covered through the end of November, the spokeswoman said. Those laid off likewise will be provided profession transition services, she said.
Unum’s stock rate fell by almost 2 percent Friday, declining 35 cents to end the day’s trading $18.26. Investors didn’t appear fazed by the layoff news, with the stock closing near the exact same point it was at when the layoffs were announced around 1 p.m.
Unum had been trading at about $30 a share early this year, but it was amongst the stocks hit hard when the pandemic spread. Its share price decreased to nearly $10 in late March and has actually been usually trading in between $15 and $20 a share since then.
In its latest revenues statement in July, Unum said it had $231.9 million in adjusted operating earnings from its North American operations throughout the second quarter, a decrease of 8.8 percent from the very same duration in 2019. Like the majority of companies, Unum has actually suspended offering guidance on its financial performance for the rest of 2020 due to the fact that of unpredictabilities over the impact of the pandemic.
Beyond the pandemic, insurance providers are coping with a hard business environment. In addition to the coronavirus pandemic, which has actually rushed markets worldwide, insurance providers are dealing with an aging labor force in which more staff members will retire and leave their on-the-job health and life insurance benefits.
Quotes are that the number of Americans 65 and older– and for that reason qualified for Medicaid medical insurance– will grow from 12.3 percent of the U.S. population in 2000 to 21.6 percent in 2040.
Interest rates also remain low, limiting the return insurers can get from investing money they receive from premiums.
Unum was produced through the 1999 merger of Portland-based Unum and Chattanooga-based The Provident Business. Up till the mid-80s, Unum’s name was Union Mutual Insurance.