Assurant Mobile Solutions will close its doors on its mobile tech support business in Lewisville, Texas. This will result in Assurant layoffs of 250 employees.
The business was focused on repairing mobile devices, as well as the logistics aspects. Assurant Mobile Solutions is a division of Assurant, Inc. (NYSE:AIZ), its parent company. The mobile solutions company was acquired by Assurant under the company name Broadtech LLC back in 2015.
Assurant Layoffs: How Will the Job Cuts Occur?
The employees to be affected by the shutdown can expect to be removed from payroll beginning February 1, 2018. The job cuts are expected to continue through to June.
These employees will be receiving a severance package and outplacement benefits for their time with the company. Also the severance package and benefits are intended to give employees a smooth transition into their next career move.
Since Assurant Mobile Solutions is part of a larger company, it is giving impacted employees the ability to apply to open positions within the parent company and its other business divisions. However, individuals who follow this path will not be receiving a severance pay package or any related benefits.
How Will this Move Impact Assurant, Inc.?
A few years ago, mobile solutions would have been considered the new exciting business venture that would earn a high return of investment.
Now, the mobile device market is booming with almost everyone having a smartphone in their hands and the ability to obtain a new device in a manner of hours. This results in there not being as much demand for mobile repair services.
The size of Assurant’s mobile solution operations—250 employees—is considered small in terms of the overall size of the company. Parent company Assurant has more than 14,000 employees under all its divisions. Even with the one-time charges incurred due to the severance package and benefit, there will be no harm to the earnings of the company.
Just two months prior to this move, Assurant’s dividend did see a hike in quarterly payout. These actions show that the management team is focused on investors and making the company as efficient as possible. This could translate into even more job cuts within the company at a future point in time.
Shinneman, S., “Tech company laying off 250 employees in Lewisville,” Dallas Business Journal, January 11, 2018.