California’s State Compensation Insurance Fund is cancelling plans to lay off hundreds of workers, the Sacramento Bee is reporting.
State Fund President and CEO Tom Rowe issued a message to staff that stated 1,300 workers have left since the state’s largest workers’ compensation insurer announced last year it would axe up to 1,800 jobs, according to the Sacramento Bee story, which stated the number of employees remaining is small enough for State Fund to cancel the layoff.
Established in 1914 by the state legislature, State Fund is California’s largest provider of workers’ compensation insurance.
Rowe briefly addressed the attrition when State Fund released its annual report two weeks ago showing just over $1 billion dollars in net premiums earned, a drop from 2010’s figures.
It was in October of last year the entity announced a restructuring of State Fund to be implemented this year, resulting in a reduction in workforce of from 1,500 and 1,800 positions. The restructuring is expected to save the State Fund $200 million a year. Rowe had said following State Fund’s earnings release that many of those workers already took buyouts and voluntarily quit.