State Farm Cuts 890 IT Jobs in Bloomington
State Farm plans to cut 890 IT jobs in Bloomington, GLT reported Tuesday afternoon. The company will add similar positions at its hubs in Atlanta, Dallas and Phoenix.
The move is part of efforts State Farm began last fall to consolidate its three IT departments into one, called Enterprise Technology, to better serve customers, according to a statement made Tuesday.
“Just like any business, we must continually look for ways to evolve toward 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,” the statement read.
The news comes one week after the company reported a pre-tax loss of $1.7B in the 2017 fiscal year.
Some of the 890 employees will have the chance to apply for other positions or relocate within the company; others may retire or receive severance benefits, the company said.
State Farm expects an overall company-wide reduction of 500 IT jobs by the end of the restructuring process. Despite the cuts, the company plans to maintain its total Bloomington workforce around 15,000, with 250 claims jobs from Tacoma, Washington and another 300 anticipated claims jobs moving into the area.