State Farm To Close Michigan Operations Center

State Farm To Close Michigan Operations Center

NU Online News Service, Dec. 12, 3:40 p.m. EST?State Farm Insurance Companies, in a move to combine its Midwestern operations facilities, said it will close its Marshall, Mich.-based operations center within the next two years, eliminating nearly 540 jobs in the process.[@@]

The decision will lower the number of State Farm's operations centers in Illinois, Indiana and Michigan from four to three.

In its announcement, State Farm said that while the jobs in its Marshall operations center will be gone, employees impacted by the decision will be given options to relocate and work in three remaining centers in Kalamazoo/Portage, Mich.; Bloomington, Ill.; and West Lafayette, Ind. The remaining facilities will continue to assist customers and some 2,157 State Farm agents in these three states.

The company explained the decision to close its Marshall center was reached after "an in-depth, 18-month study" of State Farm's operations in Midwestern states. In considering its options, State Farm said it has examined the potential impact on customers and employees, workflow and operating costs, as well as possible effects on operations center communities.

The company said that when the Marshall center closes, almost 170 claims positions will be added to the Kalamazoo-Portage, Mich., operations center, about 36 miles away from Marshall.

Additionally, some 256 personal underwriting jobs from Marshall will move to the West Lafayette center in Indiana, some 233 miles away. And about 175 general department jobs from Marshall will be distributed among remaining operations centers.

"These decisions, while difficult, are the best business decisions we could have made balancing the long-term benefits of our customers, company, employees and agents," said Mark Odland, regional vice president of operations for State Farm.

Mr. Odland also added that his company remains "sensitive to difficult decisions facing all of our associates whose jobs are impacted."

"We want to retain as many employees as possible. Our employees will have time to consider their options, which include employment at other State Farm locations," he said.