May 1, 2003
The collapse of a deal to sell Kemper Insurance Cos.' underwriting operations resulted in layoffs for about 1,000 employees Wednesday, including 400 in the Chicago area.
Last week, a deal to sell Kemper's insurance underwriting operations to a Swiss-backed investment group fell through.
"A lot of this is related to that announcement," said Linda Kingman, a spokeswoman for the Long Grove-based company. "That's the primary driver--the transaction we were working on did not happen."
Before the layoffs, Kemper employed about 7,000 nationally, Kingman said, with about 1,500 of those in the Chicago area.
Those losing their jobs Wednesday were given 60 days' notice. After that, they will receive severance packages based on their length of service with the company. Job counseling will also be offered.
Kemper, once a major player in the property/casualty insurance area, has suffered a series of financial crises that has decimated the company. Last year it posted a loss of $312 million.
In addition to layoffs and cutbacks, another recent announcement was testament to how troubled Kemper is.
In April, it announced it was backing out of a deal signed last year to continue sponsoring the Kemper Open, the Professional Golf Association Tour stop in the Washington, D.C., area. Kemper had been the tournament's sponsor since 1968, when it was played in Boston.
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