Williston-based insurance tech startup Polly lays off 47 employees

Williston-based insurance coverage startup Polly laid off 47 staff nationwide this week, the corporate informed VTDigger on Friday.

These staff represent about 15% of the corporate’s workforce. Ben Jastatt, senior director of communications at Polly, mentioned 17 of the individuals who misplaced jobs have been primarily based in Vermont.

Polly, which modified its identify from DealerPolicy earlier this yr, sells auto insurance plans by way of automotive dealerships, permitting clients to buy insurance coverage whereas shopping for a automotive. 

The announcement comes about 16 months after the corporate, which was based in 2015, obtained a $110 million funding from Goldman Sachs, Jastatt mentioned. The Burlington Free Press reported on the time that the corporate deliberate to triple the size of its workforce.

Jastatt mentioned Polly determined to put off the 47 staff due to “inflationary pressures” within the auto business, and that the corporate has confronted “a way more demanding financial local weather” in 2022 than in earlier years.

“We’re taking this as a chance to change into extra capital- and resource-efficient in 2023, so we will proceed to set the corporate up for fulfillment down the highway,” he mentioned.

However two former staff interviewed by VTDigger expressed skepticism in regards to the firm’s reasoning. 

One former gross sales agent, who requested to not be named as a result of they plan to proceed working within the insurance coverage business, mentioned the corporate employed “manner too many individuals too quick” after the Goldman Sachs funding.

“I feel the issue is that they anticipated rising quicker,” the worker mentioned. 

Jastatt mentioned the corporate would supply severance to laid-off staff primarily based on tenure. It additionally deliberate to pay out unused paid day without work, pay bonuses for some staff, present outplacement assist and permit staff to maintain their laptop computer to assist them discover new work.

“We did our greatest to do all the pieces in our energy to over-communicate, deal with everybody impacted with dignity, respect, assist, all the pieces we may (do) as a way to assist them transition,” he mentioned.

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