NU Online News Service

Allstate Corp. said it will reduce the work force at its homeoffice complex by 10 percent, totaling between 600 and 700workers.

The cutback is being done "to improve our competitive positionand create operational efficiencies," according to a representativefor the Northbrook, Ill.-based company, Mike Trevino.

Salaried employees were made a buyout offer earlier this week inthe form of "enhanced severance in exchange for voluntaryterminating," noted Mr. Trevino.

If the number of volunteers falls short of the target, he saidthe company "may have to employ a reduction in force."

He said of about 9,000 employees in the vicinity ofNorthbrook--a Chicago suburb--6,800 were made the offer of enhancedseverance, "including me." Lower-level hourly employees were notmade the offer.

The reduction, he said, is not intended to cover the carrier'sincreased reinsurance costs after $1.5 billion in hurricane losses,but to "improve our cost structure overall."

He could not put a figure on the cost savings involved. Themoney from the reduction will be put back into the business "aspart of a continuing investment in the company," he said.