INSpire Cuts 130 Workers

INSpire Insurance Solutions, Inc. has eliminated some 100 employees and 31 contractors company wide, a reduction of nearly 12 percent. The cut included 22 jobs in its Fort Worth office. About 1,000 employees remain with the company. The identified restructuring charge related to employee layoffs is $350,000.

“INSpire is in the midst of a turnaround effort,” said John F. Pergande, chairman of the board and CEO of Fort Worth-based INSpire. “The Company has been losing money for the past two years and is reducing expenses in an effort to address its continuing losses.”

The company reported a loss of $19.7 million in 1999 and $30 million in 2000. Revenue for the first quarter was off nearly 50 percent compared to the same period last year-down to $18.7 millon from $3.8 million, according to reports in The Dallas Morning News. The company’s operating loss for the quarter was $5.4 million compared with a $2.4 million gain for the same period last year.

Pergande continued, “In December, we undertook a complete strategic and operational review of the company. We did not want to make rash decisions that could hurt us in the long term. This examination resulted in a 100-Day Plan which has been the blueprint for our efforts to transform the company.

“As a result of workflow reviews and new practices, we determined that the company could provide the same level of services with fewer people,” said Pergande.

The move is not expected to have a substantial impact on the industry. Jerry Johns, president of Southwestern Insurance Information service, said mostly small and medium sized agencies outsource insurance needs, according to published reports.

INSpire provides policy and claims administration solutions for all property and casualty insurance products.