Bloomington, Illinois-based State Farm, the insurance and finance conglomerate, has announced that it will lay off 136 bank-related employees at its Earth City, Missouri processing center.
According to a State Farm spokesperson, "Last fall, State Farm began the process of reviewing the State Farm Bank structure. This effort was part of our continual process of looking for ways to evolve toward the future and better serve our customers. We recently communicated the result of that review: State Farm Bank employees will continue to be located in Bloomington, Illinois; Phoenix, Arizona; and St. Louis, Missouri; with the majority of operations remaining in Bloomington. We currently have approximately 400 Bank employees at the facility in Earth City.
There is little doubt that this is part of an enforced cost reduction program as the bank lost $1 million in 2017 with the parent, State Farm, losing $1.7 billion.
It is believed that the State Farm, the largest auto insurer in the United States, thinks that bank represents part of a broader initiative in response to a future when much of the risk of automobile accidents may shift from the driver and car owner to the self-driving car’s manufacturer or software vendor.
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