Hippo lays off approximately 20% of staff
Roughly a week before the anticipated release of its Q3 2023 results, Hippo initiated layoffs affecting approximately 120 employees, according to SEC filings:
“To further drive efficiency and increase focus on the strategic priorities of Hippo Holdings Inc. (the “Company”), on October 26, 2023 the Company initiated an organizational realignment, including an involuntary workforce reduction affecting up to approximately 120 employees, which represents approximately 20% of the Company’s worldwide workforce. The Company notified the majority of the affected employees on October 26, 2023, with most job eliminations effective on November 1, 2023. In the fourth quarter of 2023, the Company expects to record charges of approximately $2.2 million to $2.7 million for severance, benefits, and related costs as a result of these actions, materially all of which is expected to result in cash expenditures in the same period. The Company is continuing to review the potential impact of the reduction, including facility lease exits and additional employee related costs, and is unable to estimate any additional restructuring costs or charges at this time. If the Company subsequently determines that it will incur additional material restructuring costs or charges, it will amend this Current Report on Form 8-K with respect to such determination.”
This is equivalent to about 20% of Hippo’s workforce as mentioned earlier. As of December 31, 2022, Hippo had 590 employees.
This development follows Hippo’s decision to suspend all new nationwide business, effective August 2023.
In its most recent earnings report, Hippo disclosed that it held $565 million in cash and other investments at the close of Q2 2023, reflecting a decrease from $620 million at the end of the preceding quarter.
Founded in 2015, Hippo primarily operates as a personal property insurer and has raised over $1.2 billion since its inception. Its current market cap stands at $173.70 million, and the stock is currently trading at $7.34. Hippo is also the parent company of P&C insurer Spinnaker and insurance marketplace First Connect.
