Hagerty, Traverse City’s largest private employer, is undergoing a significant restructuring, including a refocus on sales, ending office leases in Ohio and Colorado, and laying off 83 individuals, 30 of whom are based in Traverse City. The affected employees were notified this morning. The moves follow an initial round of layoffs in early December, when the company let another 30 Traverse City staffers go. This latest round of cuts leaves Hagerty with approximately 1,700 employees globally and more than 600 in Traverse City. 

The company went public in August 2021 and is traded on the New York Stock Exchange under the symbol HGTY. The stock was trading this morning at $8.58 per share and has been as high as $19.9.

Like many high-growth companies, Hagerty’s hiring and acquisitions exploded during the pandemic; the company hired 700 since 2019 alone, and has acquired a handful of automotive-related events and businesses. Now, as a majority of Hagerty employees around the world still work remotely, Hagerty management is also experiencing increased labor and inflation costs, as well as discovering new efficiencies within its businesses. 

One change will combine the various departments serving high-net worth customers centralized under one corporate umbrella. Leases of office space in Dublin, Ohio and Golden, Colorado will be phased out, as a high percentage of Hagerty's workforce remains remote. Other restructuring changes are intended to make the company more “sales focused."

The affected employees, like the ones let go in December, will be offered severance packages, a benefit stipend, and career transition services.

CEO McKeel Hagerty tells The Ticker, “This restructuring is about the next five to 10 years and beyond. We are a growing company, and the structural changes we are making today will help us continue that growth. The decision to reduce our workforce was a difficult one and one we don’t take lightly, but we are supporting our team members who are leaving us. I want to assure everyone that Hagerty isn’t going anywhere. We remain committed to Traverse City as our home…"