Faced with two years of major operating losses, State Farm has embarked upon a restructuring program that will see the elimination of approximately 890 IT jobs most at company headquarters in Bloomington, Illinois.
It should surprise nobody that a company spokesperson wrote, “Just like any business, we must continually look for ways to evolve towards the future and serve our customers in a more efficient way. Reviewing and adjusting our processes, departments and facilities helps position the company and its employees for the future and remain strong for State Farm policyholders.”
Fate has not been kind to State Farm who reportedly suffered a property-casualty pretax operating loss of $1.7 billion in 2017 mostly attributable by a $6.5 billion underwriting loss caused by “significant catastrophe losses,” including the historic wildfires in California and hurricanes Harvey and Irma in the South.
This is not the only mass State Farm layoff as the company has indicated that it would not be renewing the lease on its 12-story building in Tacoma, Washington and that 1,400 employees will be affected as State Farm exits its two Tacoma Operations Centers. According to company spokesperson Sevag Sarkissian, “We plan to fully exit the two Tacoma Operations Centers by end of 2018. Employees ‘may have’ the opportunity to apply for jobs in other State Farm locations.”