Acrisure plans to cut 2,250 U.S. jobs due to tech advancements, CEO Greg Williams announced. Economists warn of local economic impact as sectors adapt to AI.
GRAND RAPIDS, Mich. — In a letter emailed to the entire Acrisure staff, CEO Greg Williams said that the company is reducing its headcount over the next year by 2,250 people across its U.S.-based operations.
The letter goes on to say that AI and other technological advancements are changing how businesses operate and how clients are served.
“It’s right on target with what we’re expecting across the insurance industry, across the banking industry,” said Paul Isley, Grand Valley State University economics professor.
Isley says layoffs of this sort, becoming more common in the industry, can have a massive impact on the local economy.
“For every 100 jobs that we lose, that’s between $8 million and $12 million to the economy locally, that the value of those jobs and the value of the jobs that they create by spending money has that ripple effect of about that size,” Isley said.
At the ribbon-cutting ceremony, he spoke about Acrisure’s workforce.
“I’ve learned the importance of investing in the community and what that means, not just for something you put your name on, but what it means to the folks that are here from Acrisure, I mean, it is something, it’s meaningful to them,” Williams said on Friday.
Isley said that there is historical precedent for technological advancement’s role in the workforce.
“What we’re seeing is how you can tie AI into business systems, we’re starting to see the same thing for the first time in those traditional white collar service jobs, all right, and so it’s the same type of thing that we’ve seen happen over and over through time,” Isley said.
Grand Rapids City Manager Mark Washington shared the following in response to Acrisure’s decision:
“Like many organizations, Acrisure had to make some difficult business decisions, and we understand those realities. We are incredibly grateful that they have chosen to keep their headquarters rooted in downtown Grand Rapids, and we look forward to their continued leadership and partnership in our community.” – City Manager Mark Washington.
13 ON YOUR SIDE spoke with a number of employees as they left headquarters early Wednesday evening. They say they’ve been asked not to make any public comments about this decision.