Insurtech Hippo Holdings said it has “initiated an organizational realignment” by laying off about 120 employees, or 20% of its workforce.
The company said in a filing with the U.S. Securities and Exchange Commission on Oct. 26 that it expects to record charges of about $2.2 million to $2.7 million for severance, benefits, and related costs as a result of the layoffs.
Hippo said most of the layoffs will take effect Nov. 1 – a day prior to its scheduled release of financial results for the third quarter. For the second quarter, the Palo Alto, California-based home insurer reported a net loss of $105.2 million compared to a loss of $72 million during the same time a year ago. As of June 30, Hippo recorded a net loss of $173.4 million.