Apr. 13—TRAVERSE CITY — For the second time in less than six months, one of the largest employers in Traverse City eliminated staff.

Hagerty, Inc. has laid off 186 employees since December.

It trimmed 4% of its workforce — 83 employees — Wednesday morning, according to a statement from the Traverse City-based provider of specialty insurance for classic vehicles.

It laid off 6% of its workforce — 103 employees — in a Dec. 1 filing with the Securities and Exchange Commission.

These actions were taken "following the strategic review of business processes as the Company focuses on driving efficiencies in order to achieve growth and profitability goals," the SEC filing states.

In a statement provided by company spokesman Andy Heller, Hagerty announced that, "as part of a restructure of our business, Hagerty today announced that we are reducing our workforce by 4%, 30 of whom are based in Traverse City," the statement said. "We remain committed to Traverse City and still employ more than 600 people in the Grand Traverse Region."

"This move is intended to position us for continued long-term growth and profitability as a leading automotive lifestyle brand," the Hagerty statement continued. "Hagerty continues to drive strong business momentum, including revenue growth of 27% in 2022, and look forward to maintaining this momentum in 2023 so we can invest in our people, brand and technology.

"We will miss our team members who were impacted by the restructuring."

The layoffs come less than two years after Hagerty became publicly traded, with company CEO McKeel Hagerty celebrating the stock's debut on the New York Stock Exchange by ringing the opening bell on Dec. 6, 2021. The company was valued then at $3.1 billion.

In an email sent to "One Team Hagerty" obtained by the Record-Eagle, McKeel Hagerty said the company is "in the midst of restructuring the business to ensure long-term growth and profitability" and is "is part of the 2025 Strategic Roadmap that I discussed with you during our November and January Town Hall gatherings."

"We need to nail the execution of this plan to help us reach our goal of saving driving and fueling car culture for future generations," the email from McKeel Hagerty said. "Unfortunately, this means we have had to make the difficult decision to reduce our workforce by 4%, effective today."

Those being laid off were notified by email before 9:30 a.m., the email said.

Those affected by the Wednesday layoffs are expected to receive three to 12 months of severance pay, as well as benefit incentive payment equivalent to the employer portion of Continuation of Health Coverage (COBRA) costs for 3, 6 or 12 months for medical, dental and vision care. These payments were based on length of service with the company.

Career transition support services also were offered to those who were laid off. There was no additional information provided in an email inquiry to Heller about Paid Time Off (PTO) and any bonus payouts to those who were laid off.

"We are saying goodbye to talented people, all of whom have been a large part of our success," McKeel Hagerty said in the conclusion of his email. "I am personally grateful for their many contributions, and we will support them with grace.

"Together, we have built something special here. The changes we are making will ensure we realize our mission to fund a global business to meet our purpose, create a space where team members thrive and make a positive impact on the world.

"One Team Hagerty is the engine that drives everything we do. I'm honored to work with you."

With this latest round of layoffs, Hagerty "expects to realize a charge of approximately $5 million, primarily in the first quarter of 2023, associated with this headcount reduction," according to the SEC filing.

Known for its insurance offerings — Hagerty says it covers more than 2.2 million classic and high-end vehicles, according to its annual report for fiscal year 2022 filed on March 14. The company also bills itself as an "automotive lifestyle brand focused on the love of cars and driving." That includes organizing and promoting events, to producing restoration videos and more through Hagerty Media, to displaying cars in its headquarters rotunda. The company also moved into classic car sales, having acquired Broad Arrow Auctions in August, as previously reported in the Record-Eagle in a Dec. 2, 2022, article.

The layoffs come after the company hired hundreds for a member service center in Dublin, Ohio, pursuant to its partnership with State Farm. The insurance company chipped in millions to help take Hagerty public and owns a 14.1-percent share, according to previous reporting and SEC filings.

State Farm will offer classic car insurance and Hagerty will get a commission, as well as a shot at signing new customers up as Hagerty Car Club members, as previously reported.

Those sales are expected to begin this year, and Hagerty already spent tens of millions both to further this partnership and on other Hagerty Marketplace initiatives, according to Hagerty's third-quarter 2022 results report.

"These costs commenced in 2020 and will reduce our operating profitability until we start to produce adequate revenue to cover the ongoing costs, primarily associated with serving State Farm customers," the company stated in its third-quarter report.