Allstate Corp. announced it will reduce the work force at itshome office 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 late last month inthe form of “enhanced severance in exchange for voluntarytermination,” noted Mr. Trevino. If the number of volunteers fallsshort of the target, he said the company “may have to employ areduction in force.”

He said of about 9,000 employees in the vicinity of Northbrook–aChicago suburb–6,800 were made the offer of enhanced severance,“including me.” Lower-level hourly employees were not made theoffer.

The reduction, he said, is not intended to cover the carrier'sincreased reinsurance costs after $1.5 billion in hurricane lossesbut 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.