By CAROL PARK
Costa Mesa-based Automobile Club of Southern California is cutting more than 40 jobs as part of a 100-person “shift in resources.”
Cuts were made in emergency roadside services, travel and district office operations, according to the company, which offers insurance, travel and roadside service to members.
Technology, which the club made a priority for emergency road services in the past few years, has streamlined operations and made some jobs unnecessary, said Steve Lenzi, Auto Club senior vice president.
The technology includes automated tracking and automated customer callbacks.
“We looked at positions to see if they were necessary based on technology,” he said. “The company is doing fine. We’re growing and this shift is not a result of the adverse effects of the (slowing) economy.”
Workers were given 90 days notice late last month. Those affected will be given the chance to find other jobs within the company.
“It’s not to say that everyone will stay, but 90% of those who choose to stay find jobs within the company,” Lenzi said.
The club employs 9,200 people in all, including about 3,000 in Orange County.
“We don’t need the same number of people” to get the job done anymore, Lenzi said. “This is not a sudden thing, it’s an evolution and we constantly go through this process of resource realignment.
“It’s always been done in the 33 years I’ve been here, and employees are well aware of this. Streamlining for efficiency is the only way to stay competitive,” he added.
The Automobile Club of Southern California is the largest member of the AAA federation of motor clubs.
Founded in 1900 the club’s headquarters moved from Los Angeles to Costa Mesa about 10 years ago. The not-for-profit club has more than $3 billion in yearly revenue.
Auto and other insurance policies generate about $2.4 billion annually while travel services bring in $700 million yearly.
Southern California households make up half of the club’s membership.
In Orange County, 68% of households are members. The club has 10 million members in 14 states, including 6 million in California. The club has offices in Anaheim, Fullerton, Huntington Beach, Ladera Ranch, Laguna Hills, Newport Beach, Rancho Santa Margarita, San Clemente and Tustin. n
