UPDATE: SEPTEMBER 4, 2018 — CONTINUING LAYOFFS IN A PLANNED RESTRUCTURING — 4,200 EMPLOYEES SCHEDULED TO LOSE THEIR JOBS IN A PHASED LAYOFF
100 claims and administrative support employees at State Farm’s Jacksonville, Florida Operations Center in addition to another 600 employees. According to a company spokesperson, the decision was based on the need to "adapt to the rapidly changing needs and expectations" of customers, leverage technology, and optimize available space in its facilities.” The facility should be completely closed by 2019.
59 employees at the company’s Tampa, Florida operations center.
88 inspectors, claims processors, and support staff will be laid off at the company’s operations center in Mendota Height, Minnesota. The facility is to be closed by 2019. A company spokesperson noted, “State Farm is gaining efficiency through streamlining and improving processes, leveraging technology and concentrating employees in larger locations.”
269 workers in a facility closure in the Tacoma, Washington operations center. Again, with the corporate-speak, a spokesperson claimed that the closure is about "gaining efficiency through streamlining and improving processes, adapting to the rapidly changing needs and expectations of our customers, leveraging technology, and optimizing available space in our current facilities."
82 employees in a facility closure in New Hyde Park, New York.
This should not come as a surprise to State Farm’s operations employees as the company announced the closure of approximately eleven facilities due to major losses in 2017 when the handwriting was clearly on the wall. At that time the headcount reduction was estimated at 4,200 employees.
The May 4, 2017 notice on the company’s site stated…
“State Farm Mutual Automobile Insurance Company today announced plans to exit eleven facilities in stages over the course of several years, beginning in 2018. The work from these facilities will move to the company’s headquarters in Bloomington, Ill., its offices in Atlanta, Dallas, and Phoenix, as well as a number of existing locations across the U.S. These changes will affect approximately 4,200 of the company’s nearly 70,000 employees. These employees will continue to have job opportunities in other State Farm locations.”
“We understand the decision to exit these facilities directly affects our employees and their communities. While the exits will begin in 2018 and continue over several years, we are announcing this decision now in order to give employees time to make personal and professional decisions. The company will continue to have a strong local presence in these communities through our agents and local claims employees,” said Mary Schmidt, executive vice president and chief administrative officer.”
“The company’s decision to exit these facilities was based on efforts to best serve customers by gaining efficiency through streamlining and improving processes, leveraging technology, and concentrating employees in larger locations.”
“In order to adapt to the changing needs of our customers and continue to provide the remarkable service that our customers expect, we must continue to manage our business efficiently,” added Schmidt.
State Farm intends to exit the following locations according to the projected timeline below — 2018: Parsippipany, New Jersey, Petaluma, California; 2019: Kalamazoo, Michigan, Irvine, California, Tulsa, Oklahoma; 2020: Indianapolis, Indiana, Medley, Flordia, Downers Grove, Illinois, West Lafayette, Indiana; 2021: Bakersfield, California, Federick, Maryland.
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.”
Are you asking yourself, Am I Next?