Loop goes through another round of layoffs

Car insurance startup Loop Insurance has started the week with another round of layoffs.

According to information we obtained, ~23 employees were let go, including some in the upper management. Loop had just over 30 employees prior to these cuts.

The startup, which last raised $21 million nearly three year ago, has gone through multiple cuts. The recent layoff announcement caught employees off guard as many were under the impression that Loop was able to secure a $10 million bridge round last year, and just last month the higher up management met with leadership in NY to discuss future plans.

In a LinkedIn post, co-founder and co-CEO Carey Anne Nadeau shared the email that was sent out to impacted employees:

“I am writing with some unfortunate news.

Effective today, June 16, 2024, we are no longer able to continue your employment at LOOP.

I have come to this decision as an absolute last resort — John and I were unsuccessful in raising additional capital after 20 months of trying our very best. Our last opportunity (which we had shared with you) had an investor pull out in the very final hour, and we just fell short.

As disappointing as this is, I can’t let our mission die, and see your work not have the impact it deserves. So we’ve come to this hard decision, that we’ll continue forward only with a much smaller team and operate our way through this.

This sucks for everybody, but what we’ve been able to accomplish is something to be proud of — pushing the limits on car insurance, inspiring people, and serving others — and I hope that you have enjoyed your time and the people you met along the way.

I’ve opened my calendar for 1:1 appointments, starting tomorrow, to answer your questions face to face, say thank you, and offer my support.

We wish you the best.

Carey Anne + John Henry.”

In an email we obtained that was sent out earlier today, Carey Anne writes that leadership is making a “last ditch effort to save the business and putting every penny into giving the business a chance.” As a result, those who were laid off will not receive any severance. However, Loop will cover healthcare through the end of the month as well as one month of cobra coverage.

The MGA generated just over $18 million in written premiums in 2023 according to insurance filing by Redpoint County Mutual Insurance.