Manitoba Public Insurance makes cuts to management team following external review

Manitoba Public Insurance says it has removed about one-fifth of its management team, following the recommendations of an external report that found too many managerial layers led to confusion and instability at the Crown-owned auto insurer.

MPI confirmed to CBC News on Tuesday it has eliminated 32 out of 174 budgeted management positions — an 18 per cent reduction — leaving 142 such positions.

The insurer said the changes are responding to the recommendations made by Ernst and Young in its review, which found among other things that 30 per cent of management roles have three or fewer people reporting to them directly.

"While the organization has parted ways with a small number of leaders today, the majority of the reduction has been reached by holding vacancies and rightsizing roles," a spokesperson for MPI said in an email.

The spokesperson wouldn't say how many employees were laid off on Tuesday.

MPI said it's "acted on insights" from employees and stakeholders to increase organizational stability, and "provide greater role clarity" across the insurer.

The report found it wasn't always clear who was responsible for which initiatives, and that a lack of clear responsibilities among leadership led to significant overspending in at least one project.

The review was launched by the province's former Progressive Conservative government in 2023, after the insurer awarded contracts without open bidding and tried to hire hundreds more staff.