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State Farm To Close Facilities In Nine States

State Farm HQ building
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WGLT

State Farm Insurance says it will move 4,200 Mutual Automobile Insurance Company workers to Bloomington Normal and its large hubs in Atlanta, Dallas, and Phoenix over the next four years.

Some jobs will also move to other existing locations.

Spokesman Justin Tomczak says they are consolidating eleven smaller facilities in nine states to the headquarters and the hubs."We have gained efficiencies through streamlining and improving processes. We have leveraged technology and concentrated employees in these larger locations. In fact, we are seeing benefits to housing large groups of employees together in Bloomington and the hubs," said Tomczak.

He said employee networking and professional development both get a boost.

Tomczak said State Farm is not able to say exactly where the jobs will go because they also involve individual worker decisions and several years.

"These changes are taking place over a multiple year horizon so it's really impossible to predict a specific impact by location," said Tomczak.

“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.

These employees will continue to have job opportunities in other State Farm locations, said the company in a news release.

“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.
     
Tomczak said all of the facilities shutting down are in leased buildings.

The earliest to close will be Parsippany, New Jersey, Petaluma, California, Kalamazoo, Michigan, Irvine, California, and Tulsa, Oklahoma next year and the year after. The only Illinois facility to close will be Downers Grove in 2020.

Also in 2020, auto facilities will close in Indianapolis, Indiana, Medley Florida, and West Lafayette, Indiana. In 2021, Bakersfield, California, and Frederick, Maryland offices are on the closure list.
 

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WGLT Senior Reporter Charlie Schlenker has spent more than three award-winning decades in radio. He lives in Normal with his family.
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