The company, which previously laid off 186 employees in mid 2023, declined to confirm the specific number of affected individuals.
In November 2023, Branch also announced its partnership with Root, Lemonade, ClearCover and others in the InsurTech Coalition initiative, that aims to shape the industry’s future by fostering responsible innovation, new regulatory frameworks and promoting accountability.
Significantly, despite earlier reports in late 2023 indicating Branch’s successful acquisition of additional funding, the startup has not issued an official statement confirming this progress. Concurrently, Branch Insurance Exchange, managed by Branch, disclosed a net underwriting loss of $70.6 million as of September 30, 2023.
According to a report by the media outlet Coverager, which received a statement from Branch regarding the layoffs, the insurtech acknowledged the difficulty of parting ways with valued team members and attributed the decision to the need for ensuring the resilience of Branch’s business in the face of ongoing economic turbulence.
The statement also outlined a comprehensive support package for affected employees, including severance benefits, two months of continued health insurance coverage through COBRA, career placement services with a dedicated coach, and an extended post-termination exercise period for vested options.
It said: “Persistent inflation has posed a significant challenge for home and auto insurance companies such as ours and as stewards of our members’ capital, we need to meet the moment with a sound and responsible plan for our members, employees, and investors. That’s why today, we’ve made the incredibly difficult decision to reduce the size of our team.”
ENDS
