Hanover to cut 160 jobs

The Hanover Insurance Group announced plans to cut about 160 positions in its second-quarter earnings statement on Wednesday.

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By Emily Micucci

The Hanover Insurance Group will cut about 160 jobs from its payroll as part of the company’s strategy to save and reinvest money, the Worcester property and casualty insurer announced in an earnings statement Wednesday.

Half of those cuts will take place in the Worcester headquarters, across various departments and levels.

The personnel cuts are expected to save $30 million, Hanover said. The company is also planning $20 million in non-personnel cost reductions. Further details about those cuts weren’t released.

News of the layoffs come in the midst of growing revenue for the company, which employs about 5,000 people. The Hanover posted net income of $78.2 million in the second quarter ending June 30, compared to $2 million a year earlier. Net income for the first six months of the year was $123.6 million at the end of June, compared to $80.2 million in 2016.

The cuts are part of a reorganization announced by CEO Joseph Zubretsky in February, who became Hanover’s chief executive in June 2016. The plan, called Hanover 2021, involved combining several divisions, expanding its specialty business and forming a new unit.

“These initiatives are critical to our success. They sharpen our organizational focus, broaden our business capabilities, and create financial flexibility that enables us to reinvest in our business and increase shareholder returns,” Zubretsky said in Wednesday’s statement.