Steven Wevodau - Property & Casualty Insurance

RENO, Nev. (AP) — Employers Holdings Inc. on Friday said it plans to cut about 14 percent of its work force and consolidate its corporate operations at its Reno headquarters as part of a restructuring plan.

The company, which sells workers’ compensation insurance and services to small business, said the moves are a result of its recent acquisition of AmCOMP Inc. along with current economic conditions.

With the acquisition of AmCOMP, Employers Holdings said it now employs about 1,100 people, which means the job cuts will affect about 154 people. The cuts are expected to be mostly complete by mid-2009.

“Given the unprecedented economic climate we and our customers face, additional measures are being taken that we believe are necessary to continue providing competitively priced products and quality services,” Douglas D. Dirks, the company’s president and chief executive, said in a statement.

The plan is expected to result in a pretax cost savings of about $12 million this year and $20 million to $22 million in 2010. The estimates include previously announced expected cost savings of $7.5 million in 2009 and $10 million in 2010.

The company also expects to record pretax restructuring charges of about $3 million in the first quarter of this year.

Employers Holdings said its geographic offices and underwriting functions will remain in place and a regional field operation organization will be implemented. All other corporate and support functions will be managed from Reno.

Shares of Employers Holdings rose 14 cents to $13.27 in midday trading.

RENO, Nev. (AP) — Employers Holdings Inc. on Friday said it plans to cut about 14 percent of its work force and consolidate its corporate operations at its Reno headquarters as part of a restructuring plan.

The company, which sells workers’ compensation insurance and services to small business, said the moves are a result of current economic conditions.

According to Capital IQ, Employers Holdings employs 668 people, which means the job cuts will affect about 94 people. The cuts are expected to be mostly complete by mid-2009.

“Given the unprecedented economic climate we and our customers face, additional measures are being taken that we believe are necessary to continue providing competitively priced products and quality services,” Douglas D. Dirks, the company’s president and chief executive, said in a statement.

The plan is expected to result in a pretax cost savings of about $12 million this year and $20 million to $22 million in 2010. The estimates include previously announced expected cost savings of $7.5 million in 2009 and $10 million in 2010.

The company also expects to record pretax restructuring charges of about $3 million in the first quarter of this year.

Employers Holdings said its geographic offices and underwriting functions will remain in place and a regional field operation organization will be implemented. All other corporate and support functions will be managed from Reno.

Shares of Employers Holdings fell 1 cent to $13.40 in morning trading.