Hagerty announces workforce cuts

In an SEC filing, Hagerty announced a workforce reduction of approximately 4% (83 employees) following the strategic review of business processes as the company focuses on driving efficiencies in order to achieve growth and profitability goals.

The company expects to realize a charge of approximately $5 million, primarily in the first quarter of 2023, associated with this headcount reduction.

Hagerty anticipates incremental annualized savings of approximately $20 million to $25 million as a result of this reduction in force, reduced hiring plans, as well as additional cost containment initiatives. Given the estimated restructuring charge and net savings over the balance of the year, the company now expects net income (loss) of $(13) million to $7 million and Adjusted EBITDA of $55 million to $75 million, respectively, for full year 2023.

Late last year, Hagerty announced a 6% workforce reduction.