State Farm Clarifies Media Reports Of Possible Staff Reductions

State Farm confirmed that a study it is conducting meant to increase efficiency could possibly affect staffing levels, but stressed there are no specific plans yet regarding staff levels.

Bloomington, Ill-based State Farm's spokesman, Jeff McCollum, said the company commissioned a "general departments study" last summer. He said State Farm conducts business in the U.S. and Canada through 13 designated zones, and the study is examining departments throughout those zones to see if some of the work can be centralized.

Responding to specific media inquiries recently about the impact the study may have on staff, State Farm replied with the statement: "We anticipate there could be a reduction in staffing levels, although it is too early to know to what extent. It is early in the process. State Farm looks to allow attrition and redeployment of employees to lessen the impact on individual operations."

But when speaking to NU Online News Service, Mr. McCollum said the study is still in the early stages, and there is no timeline on when it might be completed. The study, he said, is being conducted with "no preconceived staffing levels or dollars to be saved."

Explaining the study, Mr. McCollum said, "The study looked at the 'functions' of the individual departments in Bloomington and at our offices across the country and Canada. We will likely see a more centralized approach to managing those functions, but it's too early to know what impact that will have on positions here [in Bloomington] or elsewhere."

The study examined human resources, learning and development, finance, administrative services, and public affairs across the entire enterprise, Mr. McCollum said.

The goal, he said, is not necessarily staff reductions or streamlining, but rather increasing efficiency.

Additional reporting by Chad Hemenway.