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Business and Economy

State Farm To Give $1,000 Bonuses Amid Job Reductions

State Farm HQ
Bloomington-based State Farm will be giving $1,000 bonuses to an unspecified number of employees.

State Farm announced this week it’s giving $1,000 one-time bonuses to some of its employees, even as the company continues a cost-cutting realignment of its IT workforce.

The bonuses are not tied to the federal tax overhaul that has prompted publicly announced bonuses at companies like AT&T and Southwest Airlines, said State Farm spokesperson Missy Dundov. The State Farm bonuses are in addition to the company’s normal incentive and merit program.

“This bonus is a recognition of the contributions and accomplishments of our employees in helping us be there for our customers now and into the future,” Dundov said. “We have 65,000 employees nationwide, and those that qualify for our incentive program will get the bonus.”

The bonuses come even as State Farm cuts its workforce. The company said last fall that it was realigning its IT functions, including some voluntary buyouts and affecting an unknown number of employees. The IT realignment was expected to affect operations in Bloomington and hub locations in Atlanta, Dallas, and Phoenix. It’s unclear if involuntary separations will occur.

State Farm made announcements this week internally related to that ongoing IT realignment, Dundov said.

“We are still informing our employees about our next steps and are not sharing any of this type of information (publicly) at this time,” Dundov said.

How do the bonuses square with other cost-cutting moves within the company?

“Business areas continually evaluate their operations to ensure we have the right people in the right place to do the right work,” Dundov said. “As we evaluate all of our operations and facilities, we must make business decisions that make sense for our customers and our company. We will continue to make investments in our operations, technology, facilities, and our people to better serve our customers.”

Two weeks ago, State Farm announced it was vacating its downtown Bloomington location, a significant symbol of the company’s history and an iconic part of the local skyline.

Earlier this month, State Farm announced plans to close its offices in Tacoma, Washington, by the end of 2018. Around 600 of its 1,400 jobs in Tacoma will be moved to another location in Washington state. Most of the remaining work will move to State Farm offices in Bloomington and Phoenix. Bloomington's workforce is expected to grow by around 250 positions as a result, the company said.

State Farm has stressed that Bloomington will remain the company’s headquarters and that the overall local workforce will remain around 15,000 employees.

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