Today, I’m sharing some difficult news. I am announcing a 12% reduction of our current workforce, which will impact a total of 28 talented Cowbellers. This was an extremely difficult call to make and was a last resort, after considering all other options.
I want to provide some context as to why we made this decision. Although policyholder growth has been strong and the company is closing out on its largest quarter to date, a prolonged softer market cycle coupled with a rise in fixed costs necessitated us to carefully and realistically evaluate our organizational structure and cost base. While we’ve made solid progress on reining in discretionary expenses across the organization, more substantial action is needed to position the company to reach profitability within our target window.
Internally, this is a tough day for all of us at Cowbell. I want to stress that there will be no disruption to our distribution, underwriting precision, claims handling, or policyholder experience. We pride ourselves on being easy to do business with and honor our reputation among broker partners and policyholders as an extremely efficient and responsive organization – this will not be affected by these actions.
We are offering comprehensive separation packages and outplacement assistance, commensurate with our size and scale, to the impacted employees to make the transition as smooth as possible. I deeply appreciate all the contributions they have made in our journey thus far and will continue to support and cheer them on in their next endeavors.
Moving forward, Cowbell remains on the path to profitability. We are actively and successfully executing on our three-dimensional growth plan – widening our geographic footprint, focusing on upmarket opportunities, and building a presence in new markets. We are now well-positioned to be even more competitive and have the ability to capitalize on new market shifts. We will continue to partner with and serve our best-in-class industry partners to build an unmatched level of accessibility for our services. I’m proud of the work we do here every day, insuring small and mid-sized enterprises (SMEs) against evolving cyber threats, and I’m confident that as we execute efficiently, we will be more resilient than ever to future market cycles.
I would be remiss if I didn’t acknowledge that Cowbell is only in the position to successfully move forward due to the hard work, loyalty, and dedication of our employees, including those who are departing today. I’m deeply appreciative and honored to work alongside some of the smartest and most talented individuals in the industry.